Question

When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effective limits on the power of government, which of the following is most likely to be encouraged?

(A) Rent-seeking.
(B) Actions that reduce the value of resources.
(C) Productive activities.
(D) Destructive activities.

Answer 1

(C) Productive activities.

Step-by-step explanation:

All the actions detailed are traits of a public power that respect the free market as a system that allocates resources as efficiently as possible. In this case, the public system works for the mechanism of prices functions based on private decisions and firms can rely upon that none public disturbance arises in the future. The other 3 options used to occur when public institutions intervene in the free market.