In an economy lacking property rights, it would be _______ to realize the gains from trade, and there would be _______ specialization compared to an economy with property rights.
A)more difficult; more
B)more difficult; less
C)easier; more
D)easier; less
E)none of the above

Question

Quizplus · Accepted Answer

Property rights are essential for trade to occur smoothly and efficiently. Without property rights, individuals do not have legal ownership and control over their assets, which makes it more difficult for them to engage in economic transactions. In addition, without property rights, individuals are less likely to specialize in a particular area because there is no guarantee that they will be able to benefit fully from their efforts. Therefore, without property rights, it is more difficult to realize the gains from trade and there is less specialization.

In an Economy Lacking Property Rights, It Would Be _______