If Property Rights Are Not Clearly Defined and Enforced, Then

question 317

Multiple Choice

If property rights are not clearly defined and enforced, then

• A) incentives for specialization based on comparative advantage are weakened.
• B) some potential gains from specialization and trade are lost.
• C) resources are devoted to protecting possessions rather than to production.
• D) All of the above answers are correct.

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Definitions:

Cost-benefit Relationship

An analysis or assessment that compares the costs and benefits of a decision, project, or action to determine its feasibility or worth.

Least Expensive

The option or solution with the lowest cost among a selection of alternatives.

Edisonian Method

A trial-and-error approach to innovation and problem-solving, inspired by Thomas Edison's experimental practices.

Attribute Listing

A problem-solving technique that involves breaking down a system, issue, or object into its basic attributes and analyzing each to explore possible solutions.