A system of private property rights
A)enhances economic growth by creating incentives to the Fed to maintain stable prices.
B)enhances economic growth by increasing the probability that a person can gain from making investments today.
C)retards economic growth by serving the interests of the wealthy only.
D)retards economic growth by limiting the options of people who own nothing.

Question

Quizplus · Accepted Answer

Private property rights create incentives for individuals and businesses to invest in new productive ventures, as they have a greater likelihood of having exclusive ownership of the returns on their investments. This leads to increased productivity and economic growth. Additionally, private property rights can provide a basis for entrepreneurial activity, which further spurs growth.

A System of Private Property Rights