AleeeeLyrNeomari
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Select items that affect incentives for people to produce and exchange goods and services. liability rules, property rights, contract enforcement or standards for weights and measures

Respuesta :

creamymoorfoot

Property rights are an incentive to produce and exchange goods because:

  • One will want to produce more in order to get more profit, which leads to technological development.
  • One has an incentive to invest in order to obtain more profit.
  • Property rights should also be extended to intellectual property, in which intellectual work is rewarded through patents.

Contract enforcement

  • It provides assurance of the rights and obligations that both parties have to fulfill.
  • It lowers the costs both for producing and exchanging goods, people know what to expect.
  • Lowers the costs that come with uncertainty.

Standards for weights and measures

  • It provides a common trading ground lowering the costs that are associated with uncertainty.
  • Makes trade easier by providing equivalences.
  • Unifies trade and makes it faster.

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