Explain the connection between property rights and economic ...

[tatyanajohnson]

Explain the connection between property rights and economic growth.
 
  What will be an ideal response?

Question 2

According to the data in the table above,
 
  A) the standard of living worsened between year 1 and year 2.
  B) the standard of living improved between year 1 and year 2.
  C) real GDP grew more slowly than population between year 1 and year 2.
  D) as measured by real GDP per person, the standard of living remained the same between year 1 and year 2.
  E) real GDP grew more rapidly than population between year 1 and year 2.

[Jadwiga9]

Answer to Question 1

Clear property rights provide property owners the incentives to invest in the future. With clear property rights, the property owner can reap the economic benefits from investing in the property. Without clear property rights, someone else could enjoy the benefits from this investment, and this possibility could significantly decrease the incentive to invest.

Answer to Question 2

D

[tatyanajohnson]

Thank you

[Jadwiga9]

No problemo