When private ownership of a resource is clearly defined and enforced, the private owner
A) has little incentive to consider the wishes of others when deciding how to use the resource.
B) has little incentive to take care of the resource.
C) has a strong incentive to use the resource wisely and to consider seriously the wishes of others when deciding how to employ the resource.
D) has a strong incentive to consume the resource during the period rather than conserving it for future use.

Question

Quizplus · Accepted Answer

When an individual or entity owns a resource and has clearly defined property rights, they have a strong incentive to use the resource wisely and to take into account the wishes of others in their decision-making process. This is because they have a stake in the resource and are motivated to ensure its sustainability and long-term value. This self-interested behavior can lead to conservation and stewardship of the resource, as well as cooperation with others who may also have an interest in its use.

When Private Ownership of a Resource Is Clearly Defined and Enforced