Recall the Application about the lack of property rights in Peru, and why clear property rights are important for economic growth in developing countries, to answer the following question(s) . Clear property rights give owners an incentive to make long-term investments in their property, and are vital for the property owners to be able to borrow funds.
-According to this Application, in Peru, producing palm oil is very profitable but is a time consuming process. Producing coca paste, an ingredient in cocaine, is not as costly or as time consuming as the production of palm oil. To switch Peruvian farmers from producing an ingredient used for cocaine to producing the profitable and safe palm oil would require
A) informal ownership of property.
B) cocaine being declared illegal in Peru.
C) improvements in finance and the ability to borrow funds.
D) governmental approval.
Correct Answer:
Verified
Q147: Q148: The absence of clear property rights inhibits Q149: Q150: Recall the Application about the lack of Q151: In the Solow model, if total saving Q153: Q154: Explain the connection between property rights and Q155: Capital deepening will occur as long as Q156: Q157: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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