If property rights are not well enforced, all of the following are likely to occur except
A) fewer goods and services will be produced.
B) economic efficiency will be reduced.
C) an economy will produce inside its production possibilities frontier.
D) a significant number of people will be willing to risk their funds by investing them in local businesses.
Answer: D
You might also like to view...
Locating a point on a utilities possibilities frontier gives you information about
A) both equity and efficiency. B) equity but not efficiency. C) efficiency but not equity. D) profitability but not efficiency.
If a country voluntarily agrees to have its companies import more goods from another country, the country has
A) a voluntary import expansion (VIE) agreement. B) a voluntary restraint agreement (VRA). C) a mandated tariff. D) a mandated agreement.
If the debt of the federal government increases by $10 billion in one year, the budget:
A. deficit in that year increased by $10 billion. B. deficit in that year must be $10 billion. C. surplus in that year must be $10 billion. D. surplus in that year decreased by $10 billion.
The market clearing price of computer modems has just decreased. Which of the following could have caused this change?
A. an increase in demand with supply unchanged B. a decrease in supply at the same time that demand increases C. an increase in supply at the same time that demand decreases D. a decrease in supply with demand unchanged