Better Defined Property Rights Are Always Preferred to Less Defined

question 67

Multiple Choice

Better defined property rights are always preferred to less defined ones. The reason why property rights are not perfectly defined:

• A)is due to the presence of fairness issues.
• B)is the absence of transaction costs.
• C)is the result of an optimization process.
• D)is that a large share of voters are ideologically opposed to it.

---

Definitions:

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

Emotional Reactions

Immediate responses to stimuli or situations that involve feelings, ranging from happiness and love to anger and fear.

Internal Locus

A psychological term referring to individuals who believe they have control over their own life events and outcomes, as opposed to external forces.

External Locus

A belief that one's life events are largely controlled by external forces or factors beyond one's personal control.