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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

Kaitlin Dean

in Social studies

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Ralph Lopez on August 2, 2018

Property rights are an incentive to produce and exchange goods because:nobody is going to want to produce more in order to obtain more profits, which leads to the development of technology.One has an incentive to invest in order to get more benefits. Property rights should also be extended to the intellectual property, in which intellectual work is rewarded through patents. Contract enforcementIt offers you the guarantee of the rights and obligations that both parties have to comply with. Reduces costs both for the production and exchange of goods, people know what to expect.Reduces the costs that come with uncertainty. The standards of weights and measuresIt provides a common trading ground of the reduction of the costs that are associated with the uncertainty. It makes it easier to trade, for the provision of equivalences. Unifies the trade and makes it faster.


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