When Private Ownership Rights Are Well-Defined and Enforced, Owners of Physical

question 235

Multiple Choice

When private ownership rights are well-defined and enforced, owners of physical assets and resources

• A) have no incentive to consider the desires of others.
• B) incur the opportunity cost of ignoring the wishes of others.
• C) are not responsible if the use of their assets impose harm on others.
• D) have little incentive to take care of their assets.

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Definitions:

Tangible Assets

Physical assets that can be touched or seen, such as machinery, buildings, vehicles, and inventory, which have a value and are owned by a business.

Escrow Settlement

A financial arrangement where a third party temporarily holds and regulates payment of the funds required for two parties involved in a given transaction.

Accountant

A professional responsible for managing and examining financial records and ensuring accuracy and compliance with laws.

Buyer And Seller

Individuals or entities involved in the transaction of goods or services, where the buyer acquires these from the seller in exchange for money.