Final answer:
The principle of Contribution is used to determine the addition of amenities like a tennis court to an apartment complex, assessing if it increases the overall property value sufficiently. Property rights underpinning economic actions and government investments in human capital, infrastructure, and R&D are critical to economic growth.
Step-by-step explanation:
When one is advised to add a tennis court to an apartment complex, this is determined by the appraisal principle of Contribution. The principle of Contribution relates to how a single component of a property contributes to the overall value of the property. This principle suggests that the tennis court should add enough value to the property to justify the cost of its construction and maintenance. It is essential in making cost-effective decisions that align with maximizing property value.
Property rights and economic growth are closely linked, as they allow individuals to use their properties to their fullest potential. Economic growth is facilitated when productivity increases, and this is reflected through innovations such as capital deepening and technological advancements.
Governments play a crucial role in this process by investing in factors such as human capital, physical infrastructure, and research and development, which can help increase productivity and foster economic growth.