If Property Rights Are Not Clearly Defined and Enforced, Then

question 431

Multiple Choice

If property rights are not clearly defined and enforced, then

• A) incentives for specialization based on comparative advantage are weakened.
• B) resources are devoted to protecting possessions rather than to production.
• C) some potential gains from specialization and trade are lost.
• D) All of the above answers are correct.

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Definitions:

Budgeted Unit Sales

The projected quantity of products a company expects to sell over a certain period, based on budgeting processes.

Budgeted Cost

An estimated financial amount allocated for a specific purpose, project, or time period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate budgeting and performance evaluation.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of production volume, such as rent, salaries, and insurance premiums.