Private markets can allocate resources optimally
A)under all circumstances
B)only if property rights are well defined and can be easily enforced
C)whenever property rights are well defined, regardless of whether they can be easily enforced
D)whenever property rights can be easily enforced, regardless of whether they are well defined
E)whenever there is no government intervention in the market

Question

Quizplus · Accepted Answer

Private markets can allocate resources optimally only if property rights are well defined and can be easily enforced. This ensures that individuals have the incentives to make efficient decisions concerning the use and distribution of scarce resources. Without such a clear system of property rights, private markets are less likely to achieve an optimal allocation of resources.

Private Markets Can Allocate Resources Optimally