Which of the following statements about the above figure is TRUE? ...

[Jkov05]

Which of the following statements about the above figure is TRUE?
 
  A) Point A is equally preferred to point C.
  B) Point B is equally preferred to point C.
  C) Point C is preferred to point A.
  D) Point A is preferred to point C.

Question 2

If property rights are not clearly defined and enforced, then
 
  A) incentives for specialization based on comparative advantage are weakened.
  B) some potential gains from specialization and trade are lost.
  C) resources are devoted to protecting possessions rather than to production.
  D) All of the above answers are correct.

[Brenm]

Answer to Question 1

C

Answer to Question 2

D