When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effective limits on the power of government, which of the following is most likely to be encouraged?
a. rent-seeking
b. actions that reduce the value of resources
c. productive activities
d. destructive activities
C
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The wealthiest 10 percent of the population owns about
A) 30 percent of all the wealth in the United States. B) 50 percent of all the wealth in the United States. C) 70 percent of all the wealth in the United States. D) 90 percent of all the wealth in the United States.
By requiring that applicants for insurance policies fill out lengthy forms and take a physical examination, insurers attempt to guard against
a. symmetrical information b. adverse selection c. natural selection d. moral hazard e. the winner's curse
When the court requires evidence that a monopoly actually used its size to violate antitrust laws, this criterion is called
a. rule of reason b. Sherman antitrust c. per se d. countervailing power e. creative destruction
Assume that the share of population employed in all countries is 50 percent. Based on the information in the table, which country has the smallest real GDP per capita? CountryPopulation (millions)Average Labor Productivity ($)A1002,000B15010,000C7525,000D25050,000E9560,000
A. Country D B. Country B C. Country E D. Country A