In some countries it is time consuming and costly to establish ownership of property.Reforms to reduce these costs would likely
A)have no affect on either real GDP nor productivity
B)raise real GDP and productivity.
C)raise real GDP but not productivity.
D)raise productivity but not real GDP.

Question

Quizplus · Accepted Answer

Reforms to reduce the costs and time involved in establishing ownership of property would incentivize more people to invest in property and would increase the efficiency of the real estate market. This in turn would lead to an increase in economic activity, resulting in a higher real GDP and productivity. Therefore, the correct choice is B) raise real GDP and productivity.

In Some Countries It Is Time Consuming and Costly to Establish