Not Enforcing Property Rights in an Economy Will

question 91

Multiple Choice

Not enforcing property rights in an economy will

• A)cause the market system to work efficiently.
• B)not change the level of investment.
• C)lower the level of investment.
• D)raise the level of investment.
• E)increase the demand for loanable funds but not the supply.

---

Definitions:

Cash Balances

Available cash on hand or in bank accounts that a company uses for daily operations.

Investments in Inventory

Funds allocated by a business to purchase goods and materials held for resale or production.

Minimum Costs

The lowest amount that can be spent on the production of a good or service while maintaining its quality.

Holding Inventory

The process of storing unsold goods or materials that a business intends to sell to generate revenue.