Suppose everyone working the land in Exland knows the usefulness of investing in land irrigation systems. Those who work the land may choose not to invest in these profitable irrigation systems as long as
A) the investment is too expensive.
B) the natural climate, such as abundant rain, makes the irrigation projects unnecessary.
C) their property rights, with respect to the land, are subject to change.
D) the government dictates the choice of investment.

Question

Quizplus · Accepted Answer

Property rights that are subject to change create uncertainty for landowners, making them less likely to invest in long-term projects like irrigation systems.

Suppose Everyone Working the Land in Exland Knows the Usefulness