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:

Proxy

A proxy is an authorization given by a shareholder or other party to represent them and vote on their behalf in a corporate or other formal meeting.

Shareholders' Meeting

A gathering of a corporation's shareholders, held to discuss the company's performance, elect the board of directors, and make decisions on major company issues.

Embezzlement

The act of dishonestly withholding or misappropriating funds or assets that have been entrusted to someone's care, typically in a work or official capacity.

Personal Liability

The legal responsibility of an individual to compensate for harm or loss caused by their actions or negligence.