How do property rights help to allocate resources to their best uses?
Economics Module 3 Discussion Questions (50 words per question):1. Look at how companies produce things -the techniques that they use as they produce more – and compare it to how you and your friends choose to do leisure activities. When the cost of producing changes, how do the methods of production change? Is it similar to the choices you make when the cost of the leisure activities you do changes?2. What industry is the closest example you can think of to perfect competition, and why? What are its characteristics?3. If there is only one supplier of a good or service, why? How is its monopoly protected?4. Young, healthy people tend to be the least-likely to buy health insurance because they think they don’t need it. What problem does this create for unhealthy people who want to buy insurance and why?5. Property rights are a crucial part of a functioning market economy and economic growth. Consider the difference between cows and endangered species of animals. How do property rights prevent cows from becoming extinct? If it were legal to buy and sell endangered species, would it help them recover? Why or why not? How do property rights help to allocate resources to their best uses?
