Explain why reducing uncertainty with respect to property rights is regarded as likely to stimulate economic...
Explain why reducing uncertainty with respect to property rights is regarded as likely to stimulate economic growth.
Homework Answers
Needed preconditions for economic growth are physical capital growth, human capital development, and technological advances. However, people want to purchase physical capital and human capital only if they believe they will be able to enjoy the rewards from their investment. If property rights are not enforced, investors will be unsure about the gain from a financial investment, so they will be less likely to purchase either physical capital or human capital. Unpredictability about the enforcement of property rights will considerably slow economic development due to the fact that it will slow development in physical capital and human capital. The story about innovation is similar: People want to purchase brand-new technology only if they think that they will reap the rewards from the investment. Once again, reducing uncertainty about the enforcement of property rights will increase people's incentives to develop new technology, which will lead to more fast financial development.
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Can someone explain me this question please. Thanks in advance Countries with poor property rights enforcement...
Can someone explain me this question please. Thanks in
advance
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Can someone explain me this question please. Thanks in
advance
Countries with poor property rights enforcement generally have lower income per person than those with better property rights protection. What can the government of a relatively poor country do to promote economic prosperity? Check all that apply. Establish and enforce strong property rights. Encourage transmission of knowledge by removing patents and copyrights. Promote free trade by reducing or removing tariffs on imports from foreign countries. Encourage its officials to facilitate...
Given the importance of secure property rights, how can you explain that in the US there is widespread support for programs that take money from one group of people for the sole purpose of giving it to another group of people? What is the justification for this? How do these programs impact long term economic growth?
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