ECON 2301 SLO #7
Discuss and explain how the lack of enforced property rights, failure to even-handedly
enforce contracts, and corruption in a country influences economic activity and the
measurement of that activity in that country.
In your book Chapter 8 & 9 give us a measure or method for judging a nation’s success and introduces
two indexes, CPI and GDP. Chapter 10 introduces the concept of long term economic growth. Chapter
11 talks about the sources and policies that lead to Long-Run Economic Growth.
As a background for this assignment watch the following videos:
Is America number One?
Why Some Countries Are Poor and Others Rich
How to Make a Country Rich
What to do:
1. Write a paragraph (approximately 200 words) explaining what economic growth is and the
importance of property rights to either encourage or discourage economic growth, and how
these rights might help or hinder economic growth.
Pages in the textbook will help. p. 56, 67,140-141, 306, and 352-361, 342-349.
2. Write one paragraph (approximately 200 words) comparing and contrasting the difference in
economic growth of two countries. Find one country that has failed to even-handedly enforce
contracts and private property rights and thus has had slow economic growth and one country
that successfully and even-handedly enforces contracts and private property right and has
experienced rapid economic growth.
3. Write one paragraph (approximately 200 words) describing what you would recommend a
country change to encourage a stronger rate of economic growth for its citizens.
Watching the videos should give you something that might help with this activity. (You can also think
about above-ground economy vs. underground economy or black market, or formal and informal sector
and how decreasing this will help the growth rate of a country.)
What pages in the book will help. p. 58, 115, 183-185, 220-222, 247-248, 324,
342- 349
, 357-360, 639-
642