Black Market

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-


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