Properly enforced property rights will usually cause
A. lower levels of investment spending.
B. lower levels of real interest rates.
C. higher levels of investment spending.
D. higher levels of real interest rates.
Answer: C
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The tragedy of commons is the
A) underuse of a common resource. B) absence of incentives for people to pay for what they consume. C) fact that common resources are nonrival. D) overuse of a common resource.
The perfectly competitive market structure benefits consumers because
A) firms add a much smaller markup over average cost than firms in any other type of market structure. B) firms produce high-quality goods at low prices. C) firms do not produce goods at the lowest possible price in the long run. D) firms are forced by competitive pressure to be as efficient as possible.
The degree of a factor's specificity is directly related to
A) the amount of time required to redeploy the factor to a different industry. B) the cost of the factor as a proportion of the long-run total cost of production. C) the mobility of the factor, with more mobile factors having more specificity. D) technology differences between two countries, with a more advanced technology resulting in more factor specificity. E) factor quality, with higher quality factors having a higher level of specificity.
Compared to a valued added tax, a sales tax is _____
a. easier to monitor b. easier to apply to investment goods c. harder to collect d. all of the above e. a and b