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:

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.

Production

The process of creating goods or services by combining labor, materials, and technology.

Dollar Amount

The total value of something expressed in dollars.

Sales Revenue

The total amount of money generated from the sale of goods or services by a company before any expenses are deducted.