In a market system,well-defined property rights are important because they:
A) reduce unnecessary investment.
B) limit destructive economic growth.
C) create economic problems.
D) encourage economic activity.

Question

Quizplus · Accepted Answer

Well-defined property rights encourage economic activity because individuals and businesses have a clear incentive to invest in and develop their property. This leads to greater productivity, innovation, and economic growth overall.

In a Market System,well-Defined Property Rights Are Important Because They