The positive correlation between economic success and well-defined private property rights is
A) random chance.
B) an example of capitalist greed and exploitation.
C) because when resources are owned,they are not treated as having a marginal cost of zero.
D) coincidental.
E) only evident in the Western world.

Question

Quizplus · Accepted Answer

When resources are owned, individuals have an incentive to use them efficiently because they recognize that their use entails a cost. When private property rights are not enforced, individuals may use resources without considering their true cost, leading to waste and inefficiency. This results in less economic success.

The Positive Correlation Between Economic Success and Well-Defined Private Property