Political stability and property rights protection Group of answer choices guarantees low unemployment. ensure income equality. promote economic growth.

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Keiranelmwood8327idn Keiranelmwood8327idn

05-07-2022
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Political stability and property rights protection Group of answer choices guarantees low unemployment. ensure income equality. promote economic growth.

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Tutorconsortium330idn Tutorconsortium330idn · Answer 1 · 2022-07-17T01:47:11-04:00

Promote economic growth

Political stability and property rights protection promote economic growth.

What are the effects of political stability and property rights?

Political stability:

Investment drops when people can't rely on reliable returns on their investments in human or physical capital, which inhibits future growth.

After all, investing only makes sense if the final result is reasonably assured. Political unpredictability eliminates any motivation to invest in either physical or human capital because there is no guarantee of a return.

Property rights:

Individuals can own property (including homes, land, and other resources), and when they use their property in production, they own the resulting output. This is the single biggest incentive for voluntary production.

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What are the effects of political stability and property rights?

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