When natural resources are not traded, or where markets are not allowed to function as well as they can under a system of well-defined property rights, the problems of ____ and ____ are common.
A) higher taxes; increased regulation
B) waste; scarcity
C) inflation; unemployment
D) slow growth; fluctuating currency values

Question

Quizplus · Accepted Answer

When natural resources are not traded or markets are not allowed to function well, waste and scarcity become common problems. This is because there is no efficient allocation of resources and no incentive for individuals to conserve or use resources efficiently.

When Natural Resources Are Not Traded, or Where Markets Are