Which of the Following Nations Is Most Likely to Be

question 57

Multiple Choice

Which of the following nations is most likely to be unappealing as a place for doing business?

• A)A nation that has a market-based economic system
• B)A nation that has a strong legal system
• C)A nation that has a democratic political institution
• D)A nation that enforces strong property rights
• E)A nation that has a totalitarian political system

---

Definitions:

Expensive Advertisement

High-cost marketing activities aimed at promoting products, services, or brands to a wide audience.

Product-variety Externality

An economic condition where the diversity of products benefits consumers more than what is accounted for by the producers, leading to positive external effects in a market.

Business-stealing Externality

A business-stealing externality occurs when the entry of new businesses reduces the demand for existing businesses, potentially lowering profits without necessarily benefiting consumers.

Positive Externality

An advantage received by individuals without their active choice, commonly linked to communal goods or services.