Author Question: Why are inclusive property rights considered to be sources of ... (Read 111 times)

Arii_bell · **on:** Jun 30, 2018

Why are inclusive property rights considered to be sources of wealth?

Question 2

A Basic principle of economics is:
A) knowing your customer means understanding their income.
B) there are costs involved in any action or decision.
C) demand equals supply.
D) equilibrium is beneficial.
E) size and market share are important goals for a business.

harveenkau8139 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Wealth means a person has more choices, and more inclusive property rights are sources of wealth. Such property rights give an individual more options and greater incentives to avoid inefficient choices. While possessory rights facilitate investment in specialized assets that cut production cost, a dependable legal system allows the individual to better predict future flows of income and loan repayments from this investment.

Answer to Question 2

B