Question

Suppose you have data about two groups of countries, one with efficient legal systems and the other with slow, costly, and inefficient legal systems. Which group of countries would you expect to exhibit higher living standards?

Short answer

The country with efficient legal rules demonstrates a higher living quality.

Step-by-step solution

Introduction

The legal system has an impact on the level of living since it protects the rights of the citizens of the country.

Having a well-functioning judicial system reduces the amount of defaulters.

Explanation

Itisassumedthattwogroupingsofnationsexist.

Theonehasafast,expensive,andinefficientjudicialsystem,whereastheotherdoesnot.

Becauseasluggish,expensive,andinefficientlegalsystemleadstoadelayinjustice,thegroupofcountrieswithanefficientlegalsystemispredictedtohavehigherlivingstandards.

As a result, the number of people who default will rise.

It also slows the economy's growth; as a result, a country with effective legal rules exhibits a better living standard.