The Ability of an Individual to Own and Exercise Control

question 148

Multiple Choice

The ability of an individual to own and exercise control over scarce resources is called

• A)market failure.
• B)property rights.
• C)externality.
• D)market power.

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Definitions:

Finance Company

A financial institution that offers loans, leases, and other financial services to consumers and businesses.

Conditional Sales Contract

An agreement for the purchase of goods that does not fully transfer ownership to the buyer until certain conditions, typically full payment, have been met.

Simple Interest

Interest calculated only on the principal amount, or the initial sum of money borrowed or invested, without compounding.

Finance Company

A business that provides loans to individuals and companies, unlike banks, primary lending revolves around installment credit and financing consumer purchases.