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). 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.
Answer: C
Economics
You might also like to view...
If a perfectly competitive firm has economic profits greater than zero, then we know that
A) the firm's industry is not in long-run equilibrium. B) the firm's industry is in long-run equilibrium. C) the firm is producing at the bottom of the average total cost curve. D) the firm will reduce output.
Economics
A monopsonist will hire fewer workers than will be hired in a competitive labor market
a. True b. False Indicate whether the statement is true or false
Economics