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

Question

Quizplus · Accepted Answer

Defining and enforcing property rights is essential for trade because it ensures that individuals can securely own and exchange goods and services, which is a fundamental requirement for trade to occur efficiently and effectively. Without clear property rights, there would be less incentive to engage in trade, as the security of one's ownership over traded goods could not be guaranteed.

In Order to Societies to Reap the Gains from Trade