Question

Eduardo owns a farm in a country where taxes are very high and where the government openly considers the possibility of taking over the agricultural sector. Eduardo stopped investing in his farm and only works enough hours to be able to grow the food necessary for him and his family. Eduardo's behavior demonstrates that:

Answer 1

The major thing which Eduardo's behavior demonstrates is that:

• The freedom to own property and keep the profits from work is necessary for the survival of an economy.

What is Freedom to own property?

This refers to the individual right which every human where he is able to buy and own land or inherit it from someone, or even get it as a gift and keep it.

With this in mind, we can see that Eduardo is staying in an oppressive country where the tax rates are very high and there are no freedom to own property so he begins to stop investing in the farm and focus on subsistence agriculture.

Read more about property ownership here:
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