Assigning property rights helps correct the problems associated with common resources:
A)because it allows property owners to exclude users and to manage the resource more efficiently.
B)because it allows the government to determine the amount that would lead to the socially optimal outcome.
C)because it makes the good nonrival in consumption.
D)and therefore allows the market to better assess the marginal social benefits.

Question

Quizplus · Accepted Answer

Assigning property rights allows the owner to exclude users who may otherwise overuse or exploit the resource, and it provides the owner with an incentive to manage the resource efficiently for long-term use. This helps to correct the problems associated with common resources, such as overuse, depletion, and degradation. The other options, such as government determination and non-rivalry, may also help address some of these issues, but assigning property rights is generally seen as the most effective solution.

Assigning Property Rights Helps Correct the Problems Associated with Common