Multiple Choice

1. Compensating differentials for employees can be seen as one measure of adjusting for:
wages being paid at market rates.
problems of ethical conflict.
not pursuing wealth creation as a corporate goal.
being a risk-taking entrepreneur.
2. If property rights are enforced and contracts in trade are legally respected, it is usually assumed that:
output will begin to fall.
investment will be encouraged.
transactions costs will rise.
government is unnecessary