How does government's power to coerce behavior tend to reduce private-sector risk?
A) By guaranteeing that the government will financially cover any losses by private-sector firms.
B)By enforcing contracts and discouraging illegal behavior that threatens private property.
C) By strictly regulating the allocation of most property resources in the economy.
D) The coercive power of government only increases private-sector risk.
B)By enforcing contracts and discouraging illegal behavior that threatens private property.
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On a graph showing the relationship between x and y, the ceteris paribus condition implies that
A) no other variables are related to x and y. B) the value of x is held constant. C) the value of y is held constant. D) other variables not shown are held constant.
Economic profit
a. will never exceed accounting profit. b. is most often equal to accounting profit. c. is always at least as large as accounting profit. d. is a less complete measure of profitability than accounting profit.