If property rights are weak or uncertain, resource extraction will tend to

Name: If property rights are weak or uncertain, resource extraction will tend to
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Question

Quizplus · Accepted Answer

Weak or uncertain property rights lead to a tragedy of the commons, where individuals do not take into account the negative effects of their actions on others. In this scenario, individuals will extract resources at a faster rate than the socially efficient level, leading to depletion of the resources and lower long-run profits.

If Property Rights Are Weak or Uncertain, Resource Extraction Will