Property rights assure people that O A. the government will not confiscate their income or savings. B. the government will provide a minimum standard of living. O c. the factors of production and goods are owned jointly by the government and the people. OD. international trade will be limited. E. economic growth will enhance government involvement in the economy.
Property rights O A. don’t include intellectual property. B. include physical, financial, and intellectual property. O c. slow the economic growth by placing limits on who can use what. OD. don’t include physical property. O E. don’t include financial property.
Countries that enjoy economic growth A. have economies that allow the government to make decisions in everyone’s best interests. B. place controls on property rights so that firms are protected from competition. C. place high taxes on saving and investment. OD. restrict international trade so that domestic industries can grow. O E. have property rights and markets which provide incentives for discovering new technologies.
The Coase theorem is the proposition that if property rights exist and are enforced, private transactions are O A. efficient OB. illegal c. unnecessary D. inefficient O E. inequitable.
When the production of a good has a marginal external cost, which of the following occurs in an unregulated market? 1. Overproduction relative to the efficient level will occur. ii. The market price is less than the marginal social cost at the equilibrium quantity. iii. A deadweight loss occurs. O A. il only B. i and it C. i only D. I, ll, and ili O E. iii only
The answers are given below:
Poropeortyoughts asscore people that A. the government will not confiscate their income or savings – It boliesenly defines tangible and non-tangible perepeerties which can be owned by individuals business owners and governments, and no one sector can not coepture others’ legal, jeestifed peroperty. * Perspeerty rightskinclude physical, financier, and intellectual þuropevityPhysical axt3 duch ou land, berilding, vehicles ele, Financial assets such as stocks, bonds, cash ete; Intellectual assets such as potent, copyright, terademarle ete. ore cele incleeded in pereperty righth.
Sector the Counteries that enjoy economie growth E. have pero peorty right3 and markets which purovide incentives pour dilcovering . new technologies. Pero peerly defined perspeorty.ccight2 moness! easier for every of economy to Fenelon Smoothly I as violating puro peorty sight? 18 Bubject to legal offence of marriets purovide incentive for discovering nero technologies, economic growth com be generated efficientes af overyone is • The coole theorem 18 the puro position that if beuropeertyoughts exist and are mforced, purivate feronsactions are di efficient motivated. Coase theorem believes in burirate more
are H.Hicient D. ill, and ili In case Coase theorem believes in poirote market Solcettone of various market forteres (eg. externalily if peroperty. signie aere, well maintained and bargaining is purepeerly tonen place. of f de marginal external cost, negative externality is the crescelt where undregulated marriet porodices more than what is delivorable for the society. They only tones into account of purevate benefit ond aests their pocice is lower than marginol Social Cost. The lors of welfare il present in the foorm of deadwe got loll.