What Is the Relationship Between Institutions,such as Private Property Rights,and

question 121

Multiple Choice

What is the relationship between institutions,such as private property rights,and productive resources in terms of encouraging economic growth?

• A) Private property rights allow resources to be used by those with the most political connections.
• B) Private property rights mean that the government will produce no goods or services.
• C) Private property rights mean that everyone has the right to equal amounts of property.
• D) Private property rights encourage resources to be used in the most productive way.
• E) Private property rights guarantee that the gains from trade will be equally shared.

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Definitions:

Aggregate Demand Curve

A graphical representation showing the relationship between the overall price level in the economy and the total demand for goods and services at that price level.

Investment

The purchase of goods that are not consumed today but used in the future to create wealth, including machinery, buildings, or equipment for production.

Income

is the money received by individuals or entities, typically in the form of wages, salaries, rent, interest, dividends, or profits, for providing labor, capital, or resources.

Aggregate Expenditure Line

The aggregate expenditure line is a graphical representation in macroeconomics that shows all planned expenditures of an economy at different levels of income or GDP, indicating total spending on goods and services in an economy.