Chapter 2, Problem 15AA

To determine

Why American’s give high importance to the private property.

Explanation of Solution

 One who holds property of his own in such an economy, will have the increasing trading power as the value of the resource or the property increases. Private property basically provides the incentive to get engaged in the economic activities and can utilize the resources available optimally.

Economics Concept Introduction

Introduction:

Private property is important in the American economic system as it is a part of a capitalistic system which promotes the efficiency of the economy.