Strong property rights are important for modern economic growth because:

A. they allow governments to extract the gains from private citizens' investments.

B. people are more likely to invest if they don't fear that others can take their returns on investment without compensation.

C. they ensure an equitable distribution of income.

D. business cycle fluctuations will be smaller and less likely to disrupt investment patterns.

Question

Social Studies

Maren Carrillo

25 October, 13:42

Strong property rights are important for modern economic growth because:

A. they allow governments to extract the gains from private citizens' investments.

B. people are more likely to invest if they don't fear that others can take their returns on investment without compensation.

C. they ensure an equitable distribution of income.

D. business cycle fluctuations will be smaller and less likely to disrupt investment patterns.

+2

Answers (1)

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Karlie · Answer 1

Answer: (B) People are more likely to invest if they don't fear that others can take their returns on investment without compensation.

Explanation:

In the modern economical growth, the strong property rights are most important as they provide strong and well defined various property rights and this property rights are basically protected by the policy makers and the economists.

The individual people are bound to contribute on the off chance that they don't expect that others can take their profits on speculation without remuneration and the individual has rights to use their particular resources.

Therefore, Option (B) is correct.