A system of private property rights
A) enhances economic growth by creating incentives for the government to sell its assets.
B) enhances economic growth by inducing people to make capital 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 to make capital investments because they have the potential to reap the benefits of their investments. This leads to increased economic growth as businesses expand and innovate. Private property also provides a legal framework for individuals to own and exchange goods and services, which results in a more efficient allocation of resources. The other options are not accurate as they do not reflect the benefits of private property rights.

A System of Private Property Rights