Enforcing Property Rights in an Economy Will

question 150

Multiple Choice

Enforcing property rights in an economy will

• A)cause the market system to work less efficiently.
• B)decrease the level of foreign portfolio investment.
• C)encourage corruption and expand the underground economy.
• D)raise the level of investment.
• E)decrease the opportunities for trade.

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Definitions:

Short-Run Output

The quantity of goods and services produced over a period where at least one input, typically capital, is fixed.

Economic Profit

The financial difference resulting from deducting both visible and hidden costs from total revenue.

Profit-Maximizing Level

The point at which a business achieves its highest level of profit with its current resources and market conditions.

Economic Profit

The gap highlighted by the difference in total income and total outgoings, including every cost, for a company.