Many underdeveloped economies have a large number of squatters—people who occupy a plot of land without any deed existing to give anyone formal ownership. therefore, they use the land and its resources, but they do not officially own the land. how might the lack of well-defined property rights hold back economic growth? check all that apply. the land squatters occupy is not protected against seizure by someone else. squatters can mortgage, or borrow, against the land. squatters cannot legally sell the land they occupy.

The correct options are;

1. the land squatters occupy is not protected against seizure by someone else.

2. squatters cannot mortgage, or borrow against, the land.

In numerous nations, insecure property rights impede economic advancement and limit economic opportunities for poor people. Central government endeavors to make formal frameworks of private property rights, be that as it may, regularly give few advantages to low pay individuals, at times expanding the number encountering outrageous neediness. To advance economic improvement that advantages poor people, formal property rights frameworks must create in a way that is reliable with casual rights.

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