Compare a Property Rights System in Which People Are Allowed

question 56

Multiple Choice

Compare a property rights system in which people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds.An economist would expect that more people to decide to go to work under the __________ system and that many of those already working would decide to work more under the __________ system.

• A) former; former
• B) former; latter
• C) latter; former
• D) latter; latter

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Definitions:

Community College

A type of educational institution that provides higher education and lower-level tertiary education, granting certificates, diplomas, and associate degrees.

School Access

The extent to which individuals have the opportunity to attend educational institutions, including considerations of physical, financial, and legal barriers.

House Rent

The amount paid periodically by a tenant to a landlord for the use of a residence.

Poverty Trap

A self-reinforcing mechanism which causes poverty to persist, because people with very little resources cannot improve their economic situation despite efforts.