Phil Owns a Farm in South Dakota

question 3

Multiple Choice

Phil owns a farm in South Dakota.He does not like it when planes from the local airport fly over his property.Phil is unlikely to win a case claiming that airplanes flying over his land violate his property rights unless

• A)the planes fly over more than twice a day.
• B)he can prove there are more efficient routes for the planes to take.
• C)the flights are low and frequent and cause direct interference with Phil's enjoyment of the land.
• D)the planes belong to private individuals

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Price Level

The central value of current prices for each good and service in the economy.

Value of Money

The purchasing power of money, which varies with inflation and economic conditions, indicating how much goods and services money can buy.

Keynesian Economics

An economic theory suggesting that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.