Markets may allocate natural resources wastefully if:
A)people get too greedy
B)property rights are neither well defined nor enforced
C)catching poachers is very easy
D)All of the above are possible

Question

Quizplus · Accepted Answer

When property rights are neither well defined nor enforced, individuals have no incentive to conserve natural resources because they cannot reap the benefits of doing so. As a result, they may use or exploit these resources wastefully, leading to inefficient allocation. Greed and the ease of catching poachers may also contribute to wasteful allocation, but they are not the root cause.

Markets May Allocate Natural Resources Wastefully If