Property Rights Are an Important Feature of an Effective Market

question 39

Multiple Choice

Property rights are an important feature of an effective market because they:

• A)lead to the development of government control over prices.
• B)prevent harm to the environment from pollution.
• C)give owners of goods and services the right to use and dispose of those goods and services as they choose.
• D)are the basis for an equitable tax system.

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Definitions:

Consumer Surplus

The discrepancy between what consumers anticipate paying for a good or service and the actual cost they bear.

International Trade

The exchange of goods and services between countries, which can increase market competition and lead to better product diversity and lower prices.

World Price

The global market price of a good or service when it is traded internationally.

Free Trade

The economic policy of not discriminating against imports from and exports to foreign jurisdictions, allowing goods to move across borders without regulatory or tariff barriers.