The Enforcement of Contracts and the Adjudication of Contract Disputes

question 40

Multiple Choice

The enforcement of contracts and the adjudication of contract disputes through the court system:

• A) is a major source of business inefficiency in the United States.
• B) is not common in most of Europe.
• C) is an important way to reduce transactions costs.
• D) weakens the system of property rights.

---

Definitions:

Poverty Rate

The percentage of the population living below the poverty line defined by national or international standards.

Official Poverty Rate

A government-calculated statistic that measures the proportion of the population whose income falls below the threshold considered necessary to meet basic living needs.

Elderly Families

Families that consist predominantly of members who are of retirement age or older, often with specific medical, social, and financial needs.

Implicit Marginal Tax Rate

The rate at which additional income is effectively taxed due to the phase-out of benefits or allowances.