Why are property rights so important for markets?
A. Property rights allow companies to have a monopoly.
B. Without property rights there are few incentives to improve, create, or build something, because you cannot legally trade it.
C. Property rights force others to pay you more for the good or service.
D. Those who have property rights are more likely to create more because they will get more money in the market.
Answer: B
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Which of the following reasons best explains U.S. imports of bauxite from Jamaica and diamonds from South Africa?
a. Differences in resource endowments b. Economies of scale c. Differences in tastes d. Trade restrictions
Growing rice requires extensive irrigation in California. Economists consider water to be a ________ for rice farmers in California.
A. inferior good B. want C. need D. luxury
If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then the firm's Lerner Index equals
A) 58/16. B) 16/42. C) 58/42. D) 42/58.
The loss of utility associated with an inferior mix of output because of poorly designed regulations is known as regulation costs.
Answer the following statement true (T) or false (F)