If Property Rights Are Not Well Enforced, Which of the Following

question 215

Multiple Choice

If property rights are not well enforced, which of the following is not likely to occur?

• A)Fewer goods and services will be produced.
• B)Economic efficiency will be reduced.
• C)An economy will produce inside its production possibilities frontier.
• D)A significant number of people will be willing to risk their funds by investing them in local businesses.

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Definitions:

Innovators

Innovators are individuals or organizations that introduce new ideas, methods, or products, often leading the way in technological and societal changes.

Entrepreneurs

Individuals who take the risk of starting and managing businesses with the aim of making profits or driving social change.

Start-Ups

Newly formed firms that are attempting to pioneer a new product or production method.

Venture Capital

That part of household savings used to finance high-risk business enterprises in exchange for stock (and thus a share of any profit if the enterprises are successful).