The Factor That Leads to Underpricing and Overuse of an Economic

question 100

Multiple Choice

The factor that leads to underpricing and overuse of an economic resource is

• A)human greed and selfishness.
• B)capital markets.
• C)the lack of an enforceable property right.
• D)the lack of understanding of pollution and its effects.

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Definitions:

Capital Spending

Expenditures by businesses to acquire or upgrade physical assets such as property, industrial buildings, or equipment to increase their capacity or efficiency.

Incorporating

The process of legally declaring a business as a corporation, providing it with specific legal rights and protections.

Limited Liability

A legal structure that limits the personal financial responsibility of shareholders, partners, or owners for company debts and obligations.

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.