Recall the Application About the Lack of Property Rights in Peru

question 40

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, clear property rights are important for economic growth, because without a clear title to property,

• A) the property cannot be used as collateral for loans.
• B) people will not reside on the property.
• C) no utilities will be available for the property.
• D) the property has no value.

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Definitions:

Customer Allowance

A reduction in the selling price of goods or services, often granted to rectify complaints or fulfill contractual agreement terms.

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt early payment or promote sales.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenues.

Sales Discounts

A promotional strategy where the seller reduces the price of products or services to attract more customers or encourage quick payment.