Which of the following will most likely occur under a system of clearly defined and enforced private property rights?
A) Resource owners will tend to abuse resources and use them selfishly.
B) Resource owners will conserve vital resources for the future, particularly if they expect the resource to increase in value.
C) Resource owners will ignore the wishes of others, including those who would like to use the resource that is privately owned.
D) Resource owners ignore the wishes of others since there is little incentive to employ privately owned resources in ways that are beneficial to others.

Question

Quizplus · Accepted Answer

When individuals have clearly defined and enforced private property rights, they have a strong incentive to conserve and sustainably manage their resources, especially if they anticipate that the resource value will increase over time. This is because they can capture the benefits of the resource for themselves and future generations. Choices A, C, and D are incorrect because they assume that private property owners act solely in their own self-interest and do not take into account the external effects of their actions on others. However, property rights can provide the basis for negotiation and resolution of conflicting resource uses, as well as encourage innovation and investment in resource management.

Which of the Following Will Most Likely Occur Under a System