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In a market system, well-defined property rights are important because they: red

ID: 1179042 • Letter: I

Question

          In a market system, well-defined property rights are important because they:            

       reduce unnecessary investment.
                                        limit destructive economic growth.
                                        create economic problems.
                                        encourage economic activity.

The regulatory mechanism of the market system is:           

       self-interest.
                                        private property.
                                        competition.
                                        specialization.

According to Emerson: "Want is a growing giant whom the coat of Have was never large enough to cover." According to economists, "Want" exceeds "Have" because:            

        people are greedy.
                                        productive resources are limited.
                                        human beings are inherently insecure.
                                        people are irrational.

Explanation / Answer

In a market system, well-defined property rights are important because they: encourage economic activity.

The regulatory mechanism of the market system is: competition.

According to Emerson: "Want is a growing giant whom the coat of Have was never large enough to cover." According to economists, "Want" exceeds "Have" because: productive resources are limited.

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