Why do institutions such as private-property rights promote economic growth?
A) Private-property rights guarantee that the economy is stable in the short run, which encourages investment.
B) Private-property rights are usually forced on a country, whereas collective ownership is voluntarily adopted.
C) Private-property rights create an incentive to maximize the value of one's property, which is not true when property is collectively owned.
D) Private-property rights guarantee that everyone will have equal amounts of property.
E) Private-property rights are not established by governments but by private individuals.
Correct Answer:
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