Well-defined property rights:
A)can allow for mutually beneficial trades.
B)will result in government regulation.
C)often result in more market failures.
D)lead to more centralized decision making.

Question

Quizplus · Accepted Answer

Well-defined property rights allow individuals to have clear ownership over resources and assets, which in turn allows for mutually beneficial trades and transactions to occur. This can lead to increased efficiency and productivity in a market economy. Government regulation may still be necessary to protect property rights and ensure fair competition, but well-defined property rights do not automatically result in more government intervention. Market failures can occur regardless of property rights, but clear ownership can help mitigate some types of market failures such as the tragedy of the commons. Well-defined property rights also do not necessarily lead to more centralized decision making, as ownership can be held by individuals or decentralized groups.

Well-Defined Property Rights