What Defines the ―Rules of the Game‖ That Structure Economic

question 74

Multiple Choice

What defines the ―rules of the game‖ that structure economic incentives?

• A) institutions
• B) economic laws
• C) property rights
• D) open markets

---

Definitions:

Efficient Outcome

A situation in which no individual can be made better off without making someone else worse off, typically referring to an optimal allocation of resources.

Output Level

The total quantity of goods or services produced by a firm or industry within a specific period.

External Costs

Costs that are not borne by the producer or consumer of a good or service, but by third parties or society as a whole, such as pollution.

Market Outcome

The end result of market interactions, determined by supply and demand forces, affecting prices and quantities.