Consider two countries-country A and B. Both economies are exactly similar in all aspects except for one. There are well-defined property rights in country A, while there are no property rights in country B
Given this information, which of the following statements is likely to be true?
A) Economy A is likely to grow faster than economy B.
B) Economy B is likely to grow faster than economy A.
C) Both economies are likely to grow at the same rate.
D) None of the countries is likely to experience any growth in GDP.
A
You might also like to view...
Historical evidence suggests that:
A) command economies perform better than free economies in the long run. B) free economies perform better than command economies in the long run. C) social surplus is maximized in a command economy. D) social surplus is minimized in a free economy.
All of the following are income in kind EXCEPT
A) government provided housing. B) government provided education. C) tips received by a waitress. D) goods produced in the home.