When No One Owns a Particular Resource

question 111

Multiple Choice

When no one owns a particular resource

• A) property rights are clearly defined.
• B) individuals have legal recourse for any damages caused to their resource.
• C) no one has any incentive to consider externality spillovers associated with that resource.
• D) positive externalities will arise.

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Definitions:

Phillips Curve

An economic concept suggesting an inverse relationship between rates of unemployment and corresponding rates of inflation in an economy over time.

Natural Rate

Natural Rate usually refers to the natural rate of unemployment, which is the level of unemployment consistent with a stable inflation rate, not affected by short-term cyclical or temporary factors.

Inflation Expectations

The rate at which people expect prices to rise in the future, which can influence consumer and business spending behavior.

Unemployment Rate

The portion of the labor force that is out of work and actively pursuing employment opportunities.