Suppose the CPI was 56 in 1967, and suppose one must spend $349 today to obtain the same basket of goods and services that could be bought for $100 in 1967 . Then today's CPI is

Insecure property rights induce owners of productive assets to

A) discount expected income from their ownership at a very low rate. B) place a higher value on those assets if they want to sell them. C) use those assets more cautiously to reduce depreciation. D) do all of the above. E) do none of the above.

The statement: "If everyone trades in the competitive marketplace, all mutually beneficial trades will be completed, and the resulting equilibrium allocation of resources will be economically efficient." is formally known as:

A) the law of supply and demand. B) the first theorem of supply and demand. C) the first theorem of welfare economics. D) the first theorem of efficiency in economics.