Match the parts of the sentences to each other

Fill the blanks with the words from the text.

Answer the following questions on the text.

1) What is the fundamental requirement of a mar­ket economy?

The fundamental requirement of a market economy is a strong system of property rights.

2) What is a property right?

Property right is the exclusive authority to deter­mine how to use and service a resource.

3) What rights may the owner of an apartment have?

He has the right to determine which tenant to rent the apart­ment to. He can also use it in any other peaceful way.

4) What income does the owner of an apartment have the right to?

He has the right to all the after– tax rental income from the prop­erty.

5) When are the property rights reduced?

If I am not allowed to buy some rights from you and you there­fore are not allowed to sell rights to me, private prop­erty rights are reduced.

6) What are the three basic elements of private property?

The three basic elements of private property are (1) exclusivity of rights to the choice of use of a resource, (2) exclusivity of rights to the services of a resource, and (3) rights to exchange the resource at mutually agreeable terms.

7) Whose preferences and demands do the market values of property reflect?

The market values of property reflect the preferenc­es and demands of the rest of society.

8) Under what system are private property rights reduced?

Under socialism private property rights are reduced.

9) Who controls resources under socialist system?

Government agents control resources.

10) Why don’t socialist managers have incentives to work?

Social­ist managers neither gain when the values of the resources they manage increase, nor lose when the values fall, they have little incentive to work.

1) The fundamental requirement of a market economy is a strong system of property rights.

2) A property right is the exclusive authority to determine how to use and service a resource.

3) The owner of an apartment has the right to determine whether to rent it out or to live in it.

4) He has the right to determine which tenant to rent the apartment to.

5) He can also use it in any other peaceful way.

6) If the owner rents out the apartment, he also has the right to all the income.

7) A private property right includes the right to sell any portion of the rights.

8) If you are not allowed to sell rights to me, private property rights are. 9) One of the three basic elements of private property is exclusivity of rights.

10) Another element is the important of rights to the services of a resource.

1) The fundamental requirement of a market economy is 2) A property right is 3) The owner of an apartment has 4) The owner can determine whether to rent 5) He can also use it in 6) He also has the right to all 7) A private property right includes the right to sell 8) If I am not allowed to buy some rights from 9) Owners have exclu­sive rights to 10) We can exchange the resource at

a) the after-tax rental income. b) it out or to live in it himself. c) the exclusive authority to determine how to use a resource. d) You, private property rights are reduced. e) Mutually agreeable terms. f) The choice of use of a resource. g) A strong system of property rights. h) Complete property rights to the apart­ment. i) Any portion of the rights. j) Any other peaceful way.

Дата добавления: 2017-01-13