Why are inclusive property rights considered to be sources of wealth?
Wealth means a person has more choices, and more inclusive property rights are sources of wealth. Such property rights give an individual more options and greater incentives to avoid inefficient choices. While possessory rights facilitate investment in specialized assets that cut production cost, a dependable legal system allows the individual to better predict future flows of income and loan repayments from this investment.
You might also like to view...
Which is always true at a firms profit maximizing rate of production
The money demand function implies that money demand is
A) positively related to interest rates. B) negatively related to bond prices. C) negatively related to interest rates. D) negatively related to transactions in the economy.
Refer to the above diagram for the milk market. In this market, the equilibrium price is ________ and equilibrium quantity is ________.
$1.50 per gallon; 28 million gallons $1.50 per gallon; 30 million gallons $1.00 per gallon; 35 million gallons $28 per gallon; 150 million gallons
Some kids wait until the school year begins to buy their back-to-school clothes so that they are sure to fit in. Such follow-the-leader behavior is an example of what the text calls:
A. efficient rationality. B. rules of thumb. C. focal point equilibrium. D. bounded rationality.