Recall Application 7, "Lack of Property Rights Hinders Growth in Peru

question 34

Multiple Choice

Recall Application 7, "Lack of Property Rights Hinders Growth in Peru," to answer the following questions:
-According to the application, the lack of clear ownership of land prevents development because:

• A) owners of land are more willing to make long term investments on the land that is not clearly theirs.
• B) land without clear property rights are harder for the government to tax.
• C) land without clear property rights less more valuable.
• D) owners of the land cannot use the land as collateral when borrowing.

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Definitions:

Proportion Increased

A measure indicating how much the ratio of a part to the whole has grown.

Average Salaries

The mean amount of payment received by employees in a particular job, industry, or region, calculated by dividing the total sum of salaries by the number of employees.

Employees

Individuals who are hired by a company or organization to perform specific duties in exchange for compensation.

Population Standard Deviations

The square root of the variance of a set of values, which quantifies how much the members of a population differ from the population mean.