Question

#1 Contractual laws, by establishing recourse (protection) for parties involved,

	reduces inflation.
	promotes economic transactions and growth.

prevents recessions. #2 Lack of property rights encourage production. increases productivity. diminish economic growth. #3 Economic growth is supported by laws limiting access to private property. laws restricting trade between nations. laws that build trust between parties.

#4 In the long run, important sources of an increase in a nation’s economic growth include(s):

	zero rate of population growth.
	low college graduation rates.

high rate of labor force growth. # 5 Which one of these answers is included in GDP for 2017? The tickets to a Janet Jackson concert purchase and used in 2017. The cost of flour for a manufacturer who makes tortillas in 2017. Revenue from the sale of a five-year old boat in 2017.

Answer 1

1. The contractual between the two parties tend to increase the economic growth in the country. The contractual laws between the labour and the employer is a good example for this , by this the producer can reduce the uncertainties related to production.

Ans: Promotes economic transaction and growth.

2. The property right is related to how the resources of the nation is owned and managed, without the property rights there would be serious disagreements between the parties and this would diminish the economic growth.

Ans: diminish economic growth.

3. The economic growth occurs when the real GDP of the increases, the real GDP is adjusted off the inflation. The economic growth is supported by the laws limiting the access to private property (property right) without property right the disputes between the parties take place and that will negatively affect the economic growth.

Ans: laws limiting the access to private property.

4. In the long run the economic growth is only affected by the real variables such as the stock of capital, labour force and the technology.

Ans: high rate of labour force growth.

5. The flour is a intermediate good for producing the tortillas, so it not included in the GDP. The sale of the boat also not included in the GDP because the value of the second hand good is not included in the GDP.

Ans: The tickets to Janet Jackson that is purchased and used in 2017.