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:

Extra Cash Dividend

A supplementary dividend paid to shareholders that is above the company's normal dividend level.

Stock Price

The cost of purchasing a single share of a particular stock, which can fluctuate based on market conditions.

Average Investor

A term referring to a typical or representative investor, often considered in discussions about investment strategies or market behaviors.

Information Content Effect

The market's reaction to the announcement of new, relevant information, highlighting how the release of information can affect a company's stock price.