What Is the Relationship Between Institutions,such as Private Property Rights,and

question 121

Multiple Choice

What is the relationship between institutions,such as private property rights,and productive resources in terms of encouraging economic growth?

• A) Private property rights allow resources to be used by those with the most political connections.
• B) Private property rights mean that the government will produce no goods or services.
• C) Private property rights mean that everyone has the right to equal amounts of property.
• D) Private property rights encourage resources to be used in the most productive way.
• E) Private property rights guarantee that the gains from trade will be equally shared.

---

Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.