The rules of the game refer to:
A)how prices are determined in markets.
B)the distribution of property rights.
C)the set of rules governing the way matches are played in professional sports.
D)a well- known feature of the neoclassical economic model.

Question

Quizplus · Accepted Answer

The rules of the game refer to the distribution of property rights, or the set of rules that govern the way resources are allocated and transactions are conducted within an economic system. This includes legal frameworks, property rights enforcement, and institutional arrangements. It is a crucial aspect of economics because it shapes how markets and incentives operate. Option A is incorrect because the determination of prices in markets is one outcome of the rules of the game, not the rules themselves. Option C is incorrect because it refers specifically to professional sports, while the rules of the game are a broader concept. Option D is incorrect because while neoclassical economics has its own set of assumptions and models, it is not the only framework for studying the rules of the game.

The Rules of the Game Refer To