When an Investment Project Generates Output That Is Valued More

question 36

Multiple Choice

When an investment project generates output that is valued more highly than the value of the resources required for its production,

• A) undertaking the project will create wealth.
• B) it will generally be profitable to undertake the project if property rights are securely defined and enforced .
• C) entrepreneurs seeking profit will have little incentive to undertake such projects.
• D) both a and b are correct.

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Definitions:

Ions

Atoms or molecules with a net electrical charge due to the loss or gain of one or more electrons.

Gases

Substances that can expand freely to fill any space available, irrespective of its quantity.

Subatomic Particles

Particles smaller than atoms, including protons, neutrons, and electrons, which make up the atom's structure.

Electrons

Negatively charged particles present in every atom that function as the main conduits for electrical current in solid materials.