According to the contract theory of government, how does forming a government change peoples rights?

a) forming a government makes no changes in people's rights.

b) they give all of the their natural rights in exchange for set of civil rights

c) they give up some of their natural rights but get better protection of the rest their rights plus additional civil rights.

The correct answer is letter C.

Contract Theory is an area of economics (as mentioned earlier, area of microeconomics) that has union with law. She studies the contractual arrangements that all agents of a society can make. These have the function of reducing the uncertainties that permeate the action of these agents.

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