Multiple Choice QuestionIf property rights are clearly defined can the economy still experience externalities?Multiple choice question.Yes. The economy could experience scarcity.Yes. Transaction costs could be significant.No. The economy reaches equilibrium.No. Clearly-defined property rights eliminates scarcity.

Externalities exist becauseGroup of answer choicesthere is too much private ownership of property.owners of private property are not able to trade with others.owners of private property have an incentive to maintain their property.owners of private property have little incentive to protect their property.property rights are not clearly defined.

occur when property rights are not clearly defined.Multiple choice question.ExternalitiesShortagesSurplusesProfits

What might happen to a country’s economy and standard of living without property rights?Multiple ChoiceIncrease because people will be producing more goods and servicesDecrease because there are fewer incentives to produce goods and servicesStay the sameIncrease because there are more incentive to produce goods and services

What are the two characteristics that differentiate private goods from public goods?Multiple Choicerivalry and excludabilitynegative externality and positive externalitymarginal cost and marginal benefitownership and usage

Domestic Industry can be best protected in  A. Any economy  B. Open economy  C. Closed Economy  D. Capitalist economy