Property rights motivate people to work harder and produce more economic pie than they would if property rights were not well defined
Indicate whether the statement is true or false
TRUE
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Answer the following statements true (T) or false (F)
1. The break-even point on a break-even chart is equivalent to the point where MR = MC on a cost/output graph. 2. It may be beneficial for a firm that is suffering a loss to continue to operate in the short run as long as it is recovering its fixed cost. 3. Any revenue over and above total cost is labeled economic profit. 4. Wages paid are an example of an explicit cost of doing business. 5. Marginal cost is equal to the increase in total cost per unit of input divided by marginal product. 6. Under perfectly competitive conditions, marginal revenue is equal to the price at which a good is sold. 7. Average total cost is equal to total cost divided by marginal product. 8. Normal profit is considered an opportunity cost of operating a business.
Which of the following policy actions by the Fed would cause the money supply to decrease?
a. An open-market purchase of government securities. b. A decrease in required reserve ratios. c. An increase in the discount rate. d. A decrease in the discount rate.
Which of the following is a false statement about absolute and comparative advantage?
a. Comparative advantage is the basis for gains from trade. b. It is possible for one country to have the absolute advantage in all goods. c. It is possible for one country to have the comparative advantage in all goods. d. To find comparative advantage, you need to consider opportunity cost. e. All of these statements are true.
Economist A believes the economy is self-regulating. Economist B believes that wages and prices are inflexible downward. Economist C believes that the AS curve is vertical. Economist D believes that crowding out is likely to be complete. Which economist is most likely to advocate for expansionary fiscal policy in the in the form of greater government spending to remove an economy from a
recessionary gap? A) Economist A B) Economist B C) Economist C D) Economist D