Which of the following is not a problem with poorly defined property rights? a. Insufficient incentive exists to produce resources that cannot be protected. b. Resources will tend to be underutilized. c. Individuals may be able to use resources without paying for them. d. Little incentive to conserve on the use of poorly defined resources. […]
Government’s monopoly on force implies that government can both protect and violate rights. a. True b. False ANSWER a
Property rights often remain poorly defined because of _____. a. difficulty enforcing ownership once defined b. government fiat c. strong incentives towards the status quo d. monopolies ANSWER a
The government protects rights in a market economy by providing national defense, a court system, and a well-functioning political system. a. True b. False ANSWER b
When government action is justified based on the argument that everyone agrees to be coerced _____. a. we cannot be sure that everyone is in favor of the action b. the same justification is true of market exchange c. we can be sure that the current state of affair is Pareto efficient d. the private […]
The protection of rights is an all-or-nothing proposition. a. True b. False ANSWER b
A property right _____. a. gives the owner the right to do whatever she pleases with the property b. applies to homes and cars, but not to other types of property c. does not free an individual from related obligations d. is limited by a person’s ability to protect it from predators ANSWER c […]
The government promotes economic efficiency by producing in areas where the market fails to optimally allocate resources. a. True b. False ANSWER a
The argument that government action is justified based on the fact that people would agree to be coerced to do the action if everyone else is forced to do the action is essentially an argument based _____. a. upon the transitional gains trap b. on the free rider problem c. on the ideal of the […]
Which of the following statements best summarizes why buffalo almost became extinct during the 1800s? a. Hunters from the East refused to respect the buffalo as the American Indians did. b. Demand for buffalo meat was high in Eastern markets. c. No one owned a buffalo until it was killed. d. Buffalo do not run […]
