Clearly defined property rights promote the efficient use of property.

Question

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Clearly defined property rights provide individuals with the ability to exclude others from using their property without consent. This promotes incentives for individuals to invest in and use their property in the most efficient ways possible. It also provides a framework for resolving disputes and reducing transactions costs associated with the transfer of property. As a result, well-defined property rights have been shown to promote economic growth and resource conservation.

Clearly Defined Property Rights Promote the Efficient Use of Property