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:

Bond Prices

The amount of money a bond is bought or sold for in the market, which can fluctuate based on interest rates and the bond's credit rating.

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage.

Expansionary Monetary Policy

A form of monetary policy where the central bank increases the money supply and decreases interest rates to stimulate economic growth.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of international trade on an economy’s spending balance.