A system of private 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

Private property rights create incentives for individuals to invest in capital and be innovative because they know they can benefit from the resulting profits. This encourages economic growth and development.

A System of Private Property Rights