1. 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.
2. The regulatory mechanism of the market system is:
self-interest.
private property.
competition.
specialization.
3. 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.
Economics