Which factor is essential for the transition to a modern economic system?
Understand the Problem
The question is asking which factor is crucial for moving towards a modern economic system, requiring knowledge of economic principles and historical development.
Answer
Existence of private property rights.
An essential factor for the transition to a modern economic system is the existence of private property rights.
Answer for screen readers
An essential factor for the transition to a modern economic system is the existence of private property rights.
More Information
Private property rights are crucial as they lay the foundation for a market economy by allowing for ownership, trade, and investment in assets. This ensures that resources are managed efficiently and encourages economic growth and development.
Tips
A common mistake is to overlook the importance of property rights and focus solely on other factors like technology or labor, which are also important but less foundational.
Sources
- Transition economy - Wikipedia - en.wikipedia.org
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