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

Question

Quizplus · Accepted Answer

Defining and enforcing property rights is crucial for trade because it ensures that individuals can securely own and exchange goods and services, which is a fundamental requirement for any trading system to function effectively. Without clear property rights, there would be less incentive for individuals to engage in trade, as the security of their transactions and ownership would be uncertain.

In Order for Societies to Reap the Gains from Trade