ECO-2013 Study Guide - Midterm Guide: Excess Supply, Welfare, Gross Domestic Product
Document Summary
The process by which some people become rich will make everybody richer. The right to exclusive use of the property. Owner has sole possession, control, and use of the property. Including the right to exclude others: 2. Legal protection again invasion from other individuals: 3. The right to sell, transfer, exchange, or mortgage the property. Incentive to use resources in ways that are considered beneficial others. Owners bear the cost of ignoring the wishes of others. Whichever use is more highly valued by potential customers will earn highest investment return: 2. Private owners have an incentive to care for and manage what they own. Ex: share apartment with roommates, is the living room/kitchen as clean as bedrooms: 3. Private owners have an incentive to conserve for the future. Ex: delaying current consumption of food to save for later, rather than eating it all because it was fair game to any roommate.
