An absence of property rights often leads to market failure. When this is the case, how does society usually solve the problem?

The solution to the problem usually involves government intervention. Government can define property rights, regulate, tax, subsidize, or supply goods directly.

Economics

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When countries have different comparative advantages, the total gains from trade for all countries are larger than losses from trade.

a. true b. false

Economics

A firm that has declining marginal output would be experiencing __________.

Fill in the blank(s) with the appropriate word(s).

Economics