When natural resources are not traded, or where markets are not allowed to function as well as they can under a system of well-defined property rights, the problems of ____ and ____ are common. (Fill in the blanks)
A) higher taxes; increased regulation
B) waste; scarcity
C) inflation; unemployment
D) slow growth; fluctuating currency values

Question

Quizplus · Accepted Answer

When natural resources are not traded or markets are restricted, waste occurs due to inefficient allocation, and scarcity arises because resources are not optimally distributed.

When Natural Resources Are Not Traded, or Where Markets Are