If Property Rights Are Not Enforced in a Country

question 80

Multiple Choice

If property rights are not enforced in a country

• A)the market system will still work smoothly.
• B)entrepreneurs are unlikely to risk their own funds investing in such an economy.
• C)that country's growth rate will not be affected.
• D)that country will grow more rapidly because of the reduction of law suits.

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Definitions:

Expected Utility

A theory in economics that assesses options under uncertainty, predicting choices that maximize utility based on expected outcomes.

Marginal Utility

The added satisfaction that a consumer gains from consuming one more unit of a good or service.

Risk-averse

A characteristic of individuals or entities that prefer to avoid risk in investment choices, opting for safer, less uncertain options.

Fair Bet

A gambling term where the expected return is equal to the original stake, with no advantage for the house or the bettor.