When Competition Is Present and Private Ownership Rights Are Clearly

question 106

Multiple Choice

When competition is present and private ownership rights are clearly defined and securely enforced by the legal system, business firms will have a strong incentive to

• A) innovate and develop better products and lower cost production methods.
• B) spend time attempting to plunder (take) the resources of others.
• C) engage in wasteful activities that increase the cost of producing goods and services.
• D) use resources during the current period rather than conserving them for the future.

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Definitions:

UETA

The Uniform Electronic Transactions Act that legalizes the use of digital signatures and records in electronic commerce.

Technical Terms

Specialized language used within a particular field or profession to communicate with precision.

Specific Provisions

Particular clauses or conditions stipulated in a contract or legal document.

Plain Language Rule

A guideline that dictates the use of clear, straightforward language in legal and official documents to ensure they are easily understood by the general public.