Question

These questions please！

Question 3 (1 point) What would happen without the government's protection of property rights? U Businesses would have less incentive to provide goods and services There would be less government regulation of businesses and prices would be lower for consumers. U Taxes would be lower, causing less market inefficiencies U Businesses would have more freedom with production processes Question 4 (1 point) What does inflation cause? incomes to fall productivity to increase the government to lower taxes the value of money to fall Question 5 (1 point) How does the invisible hand direct economic activity? through advertising through prices through central planning through government regulations

Answer 1

Answer 3:Option A.

If there is no regulation of property rights by the government, then the businesses will have less incentive to provide goods and services to people. Thus, regulation in terms of protection of property rights is needed because this also has a market failure aspect attached to it.

Answer 4: Option D.

Inflation causes the value of money to fall because real value of money = nominal value of money / Inflation rate. Thus, as inflation rate increases, the value of money falls.

Answer 5: Option B,

The invisible hand or market directs economic activity through adjustment in prices. When there is excess demand in the market then prices rise and when there is excess supply in the market then prices fall.

Answer 6: Option A.

In a market economy, decisions are guided by individual self interest and there is still the ability to achieve individual self interest for the society as a whole.