Property Rights Are Important Because They

question 82

Multiple Choice

Property rights are important because they

• A) ensure an equal distribution of income.
• B) encourage cooperation by improving the chances of mutually agreeable transactions.
• C) guarantee that any exchange will make all parties better off than prior to the exchange.
• D) allow the government to control how resources are allocated.

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Definitions:

Minimizing Costs

A strategy or process aimed at reducing expenses in production or operations to increase profitability.

Substitute Resources

Productive inputs that can be used instead of other inputs in the production process; resources for which an increase in the price of one leads to an increase in the demand for the other.

Capital Goods

Long-lasting goods that are used in the production of other goods or services.

Bank Tellers

Individuals employed by banks to assist customers with routine transactions like withdrawing or depositing money, among other services.