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

Question

Quizplus · Accepted Answer

When private ownership of a resource is clearly defined and enforced, the private owner has a strong incentive to consider the wishes of others when deciding how to employ the resource. This is because if the private owner uses the resource in a way that is harmful to others or the environment, it could result in legal action, loss of reputation, or loss of future income. Therefore, private ownership promotes responsible stewardship of resources.

When Private Ownership of a Resource Is Clearly Defined and Enforced