Externalities are minimized if

Question

Quizplus · Accepted Answer

Private property rights establish ownership and control over resources and goods, which leads to responsible and efficient use of those resources. When individuals have ownership rights, they have the incentive to minimize external costs and maximize external benefits. In the absence of private property rights, externalities are more likely to occur, leading to inefficient outcomes. The other options (B, C, D, and E) do not necessarily address the issue of externalities and may actually exacerbate the problem.

Externalities Are Minimized If