The long-run monetary benefits of doing business in a country are most influenced by the:

• A. size of the labor force
• B. availability of natural resources
• C. economic system and property rights protections
• D. level of government spending

Answer: (C)

Verified step by step guidance

1. Understand that the question is asking about the long-run monetary benefits of doing business in a country, which relates to the economic environment and incentives for investment.
2. Recognize that while factors like the size of the labor force and availability of natural resources are important, they are not the primary determinants of long-run monetary benefits.
3. Recall that the economic system and property rights protections influence how resources are allocated, how secure investments are, and how profits can be retained, which are crucial for long-term business success.
4. Consider that strong property rights protections reduce risks of expropriation and encourage entrepreneurship and investment, leading to sustained economic growth.
5. Conclude that the economic system and property rights protections are the most influential factors for long-run monetary benefits because they create a stable and predictable environment for business operations.