Which of the following statements is true?
A)the initial distribution of rights affects the market's ability to reach an efficient outcome
B)the initial distribution of rights affects the distribution of economic wellbeing
C)government intervention is required if the distribution of rights favours Dick
D)government intervention is always required

Question

Quizplus · Accepted Answer

The initial distribution of rights affects the distribution of economic wellbeing because it determines who holds the rights and thus who benefits from them, even if the market can still reach an efficient outcome.

Which of the Following Statements Is True