Property rights and a strong titling system are seen as important to economic development because they allow:
A) loans to be taken out against the equity of their assets, increasing investment.
B) loans to be taken out without risk, increasing the quality, but not quantity, of investment.
C) savers to invest in property and capital.
D) governments to charge higher tax rates on untitled property.

Question

Quizplus · Accepted Answer

Property rights provide individuals and businesses with legal ownership over their assets, allowing them to take out loans against the equity of their property. This increases investment and economic activity, as people are able to access funds to start or expand businesses, purchase equipment, or make other investments. A strong titling system helps ensure that these property rights are secure and easily transferable, further facilitating investment and economic development.

Property Rights and a Strong Titling System Are Seen as Important