When political officials have substantial discretionary power to override the rule of law,
A) uncertainty is reduced and the government will be able to promote economic progress more effectively.
B) this creates uncertainty and makes business activity less attractive.
C) business investment will increase because the rule of law will no longer stifle investment.
D) the incentive to solicit bribes and political favors is weak.
B) this creates uncertainty and makes business activity less attractive.
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A monopoly may breed inefficiency by reducing competition and restricting production
a. True b. False Indicate whether the statement is true or false
A cost imposed on people other than the consumers of a good or service is a:
a. price floor. b. price ceiling. c. positive externality. d. negative externality.
An increase in the government budget deficit causes national saving to _____, the interest rate to _____, and investment to _____
Fill in the blank(s) with correct word
Suppose a family's income increases by 5% at the same time that inflation is 6%. Then the family's living standard:
A. Will increase by 5% B. Will not change C. Will increase by 1% D. Will decrease