A system of property rights
A) encourages economic growth by creating incentives to invest in capital and to be innovative.
B) discourages economic growth by discouraging the development of new ideas and ways of doing things.
C) reduces the efficiency of government, which reduces the growth rate of the economy over time.
D) encourages investment but discourages entrepreneurial activity, so the effect on economic growth is uncertain.

Question

Quizplus · Accepted Answer

A system of property rights encourages economic growth by providing individuals and businesses with the incentive to invest in capital and innovate, knowing that they can reap the benefits of their investments and ideas. This system ensures that resources are allocated efficiently and that individuals are rewarded for their creativity and hard work, leading to overall economic growth.

A System of Property Rights