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ki77a [65]
3 years ago
12

A country that has enforceable property rights, a noncorrupt political system, abundant factors of production, and a change in l

eadership and form of government every few years should suspect that economic growth will be _____ because _____.
Social Studies
1 answer:
Svetach [21]3 years ago
4 0

Answer:

These are the options for the question:

A. slow; of uncertainty due to an unstable political system

B. high; once a group comes to power all the institutions needed for growth exist

C. slow; of a lack of a dependable legal system

D. high; most of the institutions needed for growth are in place

And this is the correct answer:

D. high; most of the institutions needed for growth are in place

Explanation:

According to most economists, high economic growth needs first of all the institution of private property to be in place and enforced, because when individuals and firms have property rights, they have the incentive to invest and produce more.

Second, it needs a legal system that is fair and noncorrupt, in order to enforce those property rights.

Third, it needs abundant factors of production to invest capital and labor in the production of more goods and services.

Finally, economists have found a correlation between high economic growth and democracy.

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