8. Why is "private property" a source of economic growth? 9.How does tariffs and quotas effect...
8. Why is "private property" a source of economic growth?
9.How does tariffs and quotas effect equilibrium price and quantity of imported goods?
10.Why do most economist support free trade and oppose trade restriction?
Homework Answers
8. Private property rights enable a person to acquire private property and own it for one's own welfare. One of the most important principles in economics is that individuals respond to incentives to maximize their self-interest. Private property rights provide incentives to individuals to indulge in more economic activities as one would be able to acquire wealth and personal property by the income earned. So, the private property provides incentives to all individuals to indulge in economic activities, which increases output and spur economic growth. Therefore, private property is a very important source of economic growth.
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8. Why is "private property" a source of economic growth?
9.How does tariffs and quotas effect...
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4. A graphical comparison of tariffs and quotas Alagir and Ertil are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of rugs to 20 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $3,000. In Alagir, the government decides to impose a tariff of $2,000 per rug; in Ertil, the government implements a quota of 20 million rugs. Assume that Alagir and Ertil...
Why is economic growth key for countries who want to escape poverty? Your Answer: A higher rate of economic growth is a result of increasing productivity: meaning more goods are produced per person which increases incomes; escaping poverty faster. How do institutions increase total factor productivity (TFP) and create incentives for economic growth? Your Answer: Enter answer 4 The "institutional theory" suggests that by establishing property rights, free and open markets, and the rule of law, a country will create...
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