The absence of well-defined and enforceable private property rights often

Question

Quizplus · Accepted Answer

The absence of enforceable private property rights leads to the problem of externalities. In such a situation, it becomes difficult to determine who will bear the cost of producing negative externalities or who should receive the benefit of positive externalities. This can lead to an inefficient allocation of resources and cause difficulties for society.

The Absence of Well-Defined and Enforceable Private Property Rights Often