Explain the connection between property rights and economic growth
What will be an ideal response?
Clear property rights provide property owners the incentives to invest in the future. With clear property rights, the property owner can reap the economic benefits from investing in the property. Without clear property rights, someone else could enjoy the benefits from this investment, and this possibility could significantly decrease the incentive to invest.
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What are the two approaches followed by the U.S. government to ease the burden on the victims of free trade?
A price taker is a buyer or seller who:
A. can affect the market price, but only when collaborating with other buyers or sellers. B. takes the market price and chooses to increase or decrease it. C. takes prices in the area and averages them together to set the price for his/her good. D. cannot affect the market price.
A cost imposed on someone who is neither the consumer nor the producer is called a
a. corrective tax. b. command and control policy. c. positive externality. d. negative externality.
In a market economy the relationship between making a lot of money and providing services that are highly valued by others is
What will be an ideal response?