Chapter 19.1, Problem 3R

To determine

To explain: The non-existence of private-property can lead to poverty for some nation.

Explanation of Solution

The presence of private-property rights plays an important role as it helps the individuals to have a legal right on the ventures & can use the resources as per their wish. Using the owned property helps in the improvement of the living standard of the people.

Lack of private-property rights keeps the nations in poverty as this right is the foundation of the market economy. It provides the incentives to the people which helps them in their growth through investments & trading as owning a property in a capitalist system is considered as owing the value entitled to that property which keeps them out of the level of poverty stage.