Why is private ownership an important source of economic prosperity? A) It eliminates the opportunity cost of using a resource. B) It allows owners to do anything they want with their property. C) It makes it possible for owners to ignore the desires of others without having to bear the cost. D) It provides owners with a strong incentive to develop and use assets in ways that others value highly.
Social Studies · High School · Thu Feb 04 2021
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Here, option (D) is correct. The right to private property is an achievement of American citizens that was anchored by the US Constitution. Economically, private property is important to provide legal certainty for landlords to make changes that can influence the value of an area. These modifications can be distinct, such as building a mall that will value a neighborhood or opening a trade. In both cases, the tendency is for the region to appreciate, benefiting all residents, who will also have incentives to take home valuation initiatives.