The lack of property rights and the inaccuracy of prices as economic signals often lead to:
A) too much competition in markets.
B) an increase in consumer surplus and a decrease in producer surplus.
C) an increase in total surplus.
D) market failure.

Question

Quizplus · Accepted Answer

When there is a lack of property rights and the inaccuracy of prices as economic signals, market failure typically occurs. This refers to a situation where the market does not allocate resources efficiently, resulting in a loss of economic welfare.

The Lack of Property Rights and the Inaccuracy of Prices