How Does Government's Power to Coerce Behavior Tend to Reduce

question 54

Multiple Choice

How does government's power to coerce behavior tend to reduce private-sector risk?

• A) By enforcing contracts and discouraging illegal behavior that threatens private property.
• B) By guaranteeing that the government will financially cover any losses by private-sector firms.
• C) By strictly regulating the allocation of most property resources in the economy.
• D) The coercive power of government only increases private-sector risk.