39

Which of the following will most likely occur under a system of clearly defined and enforced private property rights?

Group of answer choices

Resource owners will fail to conserve vital resources, even if they expect their supply to be highly limited in the future.

Resource owners will consider the wishes of potential buyers when they decide how to employ their privately owned resources.

Resource owners will ignore the wishes of future buyers when they decide how to employ their privately owned resources.

All of the above are true answers to this question.

41

The difference between the amount consumers would be willing to pay and the amount they actually pay for a good is called:

Group of answer choices

the price elasticity of demand.

the income effect.

the substitution effect.

consumer surplus.

43

Which of the following is necessary for the invisible hand of market prices to work properly?

Group of answer choices

buyers and sellers who generally tend to disregard their own self-interest

democratic political procedures and highly regulated markets

price controls that restrict the movement of market prices

competition and property rights that are well-defined and enforced

44

If the demand for a good is relatively inelastic, this means that consumer purchases of the good are

Group of answer choices

not very sensitive to the price of the good.

highly sensitive to the price of the good.

unrelated to the price of the good.

unaffected by changes in the income level of consumers.

45

The sum of the producer's economic cost of all resources used to produce a good will equal:

Group of answer choices

the fixed cost of production.

the sunk cost incurred due to production.

the average total cost of production.

the opportunity cost of production.