When there is a resource for which property rights are NOT well defined and there is a difference between private costs and social costs, then all but which of the following is a way to close the difference?

Question

Quizplus · Accepted Answer

The free market system often fails to close the gap between private and social costs when property rights are not well defined, leading to market failures such as externalities. Taxation, subsidization, and regulation are tools that governments can use to address these failures and align private costs with social costs.

When There Is a Resource for Which Property Rights Are