What are private property rights? Does enforcement of property rights promote economic growth and prosperity?
What will be an ideal response?
Private property rights mean that individuals can own businesses and assets, and their ownership is secure. Private property rights are conducive to economic prosperity, because when they exist, citizens do not have to worry about the government or someone else taking away their assets arbitrarily. This provides an incentive to innovate, and improve efficiency of production that leads to economic prosperity.
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A currency appreciation is disinflationary and contractionary if the
a. inward shift of the aggregate demand curve due to the fall in exports exceeds the outward shift of the aggregate supply curve due to lower input prices. b. outward shift of the aggregate demand curve due to the rise in exports exceeds the outward shift of the aggregate supply curve due to lower input prices. c. outward shift of the aggregate demand curve due to the fall in exports exceeds the inward shift of the aggregate supply curve due to higher input prices. d. inward shift of the aggregate demand curve due to lower input prices exceeds the outward shift of the aggregate supply curve due to the rise in exports.
The Sherman Act declares that price discrimination, tying contracts, stock acquisitions between corporations, and interlocking directorates are illegal when their effect is to reduce competition.
Answer the following statement true (T) or false (F)
Most modern banking systems are based on:
A. fractional reserves. B. money of intrinsic value. C. 100 percent reserves. D. commodity money.
At a perfectly competitive equilibrium with production and trade, the slope of the production possibility curve will be
A) equal to the slope of the price line faced by the consumers. B) steeper than the slope of the price line faced by consumers. C) flatter than the slope of the price line faced by consumers. D) either steeper or flatter than the price line faced by the consumers, depending upon the relative preferences of the consumers.