Which of the Following Factors Would Be Most Likely to Encourage

question 34

Multiple Choice

Which of the following factors would be most likely to encourage investment and capital formation in a less-developed nation?

• A) High and variable rates of inflation.
• B) Tariffs and quotas that restrict international trade.
• C) A legal system that provides for secure property rights and evenhanded enforcement of contracts.
• D) High marginal tax rates.

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Definitions:

Halo Effect

A cognitive bias where an observer's overall impression of a person, company, brand, or product influences the observer's feelings and thoughts about that entity's character or properties.

Customer Satisfaction

A measure of how products and services supplied by a company meet or surpass customer expectation.

Gas Consumption

The use of gas, typically natural gas or gasoline, as a fuel for various purposes including heating, electricity generation, and powering vehicles.

Negative Trait

A personality attribute that is considered undesirable or has a harmful impact on oneself or others.