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

• A) informal ownership of property.
• B) cocaine being declared illegal in Peru.
• C) improvements in finance and the ability to borrow funds.
• D) governmental approval.

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Definitions:

Estrogen

A group of steroid hormones which promote the development and maintenance of female characteristics of the body.

Follistatin

A protein involved in muscle growth, reproduction, and the regulation of certain hormones.

Progesterone

A hormone produced by the ovaries involved in the menstrual cycle and pregnancy.