The wealth of a nation can come from tangible and intangible

The wealth of a nation can come from tangible and intangible sources and resources. Explain which is likely to be most important in wealthy nations like the United States? What role do property rights enforcement and enforcement of contracts have in generating wealth?

Solution

Ans

The most important thing is human capital which is intangible. The reason is because without human capital we can\'t use other resources. We will be like other animals who do not use resources upto full extent and do not posses technology, knowledge etc as possessed by humans. Better the enforcement of property rights and contracts greater the growth in country. E. G without RandD protection nobody will care to invent or innovate.