Question

If property rights are not well enforced, all of the following are likely to occur except;_________

A. a significant number of people will be willing to risk their funds by investing them in local businesses.
B. fewer goods and services will be produced
C. economic efficiency will be reduced
D. an economy will produce inside its production possibilities frontier.

Answer 1

If property rights are not well enforced, all of the following are likely to occur except;_________

A. a significant number of people will be willing to risk their funds by investing them in local businesses.

Step-by-step explanation:

Other options are likely to occur, except option A. Investors cannot risk their capital investing in the local economy. This is the fate of an economy where property rights are not protected. This also underlines the need for each government to ensure that property rights are recognized and legally protected.