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Recall the Application About the Lack of Property Rights in Peru

question 110

Multiple Choice

Recall the Application about the lack of property rights in Peru, and why clear property rights are important for economic growth in developing countries, to answer the following question(s) . Clear property rights give owners an incentive to make long-term investments in their property, and are vital for the property owners to be able to borrow funds.
-According to this Application, in Peru, producing palm oil is very profitable but is a time consuming process. Producing coca paste, an ingredient in cocaine, is not as costly or as time consuming as the production of palm oil. To switch Peruvian farmers from producing an ingredient used for cocaine to producing the profitable and safe palm oil would require

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Definitions:

Deferred Profit Sharing

A retirement plan in which employees receive a portion of the company's profits at a later date, usually at retirement.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee’s future benefit.

Share Appreciation Rights

A type of employee benefit plan that gives an employee the right to receive cash or stock based on the increase in the price of the company shares.

Market Value

The current price at which an asset or service can be bought or sold in the open market.