Why Do Political Instability and Insecure Property Rights Retard Economic

question 31

Multiple Choice

Why do political instability and insecure property rights retard economic growth?

• A) Fear that private property will be confiscated substantially reduces the incentive to invest and create wealth.
• B) When property rights are insecure, foreign investors will be reluctant to invest in the country.
• C) Savings will tend to flow out of a country if individuals fear their property is insecure.
• D) All of the above are correct.

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Definitions:

Cohesiveness

The degree to which members of a group or team are united in pursuing common goals and how connected they feel to the group.

Collectivism

A cultural or social perspective that emphasizes the importance of the group over individual interests or identities.

Conformity

The adjustment of one's behaviors, attitudes, or beliefs to align with the norms, attitudes, or behaviors of a group or society.

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.