In order to societies to reap the gains from trade, it is necessary to
A) distribute resources equally.
B) achieve productive efficiency.
C) foster economic growth.
D) define and enforce property rights.

Question

Quizplus · Accepted Answer

Defining and enforcing property rights is necessary for societies to reap the gains from trade as it provides incentives for individuals to engage in trade, invest in resources and productive activities, and share the benefits of trade. Without secure property rights, individuals may be hesitant to engage in economic activities, which can lead to underinvestment and low economic growth.

In Order to Societies to Reap the Gains from Trade