Property Rights Are Important Institutions for Encouraging Investment Because

question 163

Multiple Choice

Property rights are important institutions for encouraging investment because:

• A) they eliminate corruption.
• B) they increase the average return to investing,thus increasing the overall level of investment in the economy.
• C) people won't invest if they feel their property is at risk and that they may not realize a return on their investment.
• D) they tend to support industrial sectors more than agricultural sectors.

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Definitions:

Inventories

Properties or goods meant for selling in regular business activities, under production for sale, or as resources and supplies for consumption during the production phase or while delivering services.

Step-Down Method

An accounting method used in cost allocation that sequentially allocates service department costs to other departments, including production ones.

Support Department

A division within an organization that provides essential services or support to the primary operations or profit centers.

Finishing Department

The section in manufacturing where products undergo final processing, assembly, or completion.