If the Property Rights for Forests Are Clear and Enforced

question 69

Multiple Choice

If the property rights for forests are clear and enforced, then

• A) they will become common property.
• B) governments will not be able to overtax them.
• C) owners have profit incentives to harvest slowly over time.
• D) the logging of the forest will increase at an unsustainable rate.

---

Definitions:

Consumption

The use of goods and services by households, which is a primary component in calculating a country's gross domestic product (GDP).

Marginal Utilities

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Consumption Bundle

A combination of various goods and services that an individual consumes over a given period.

Preferences

The subjective tastes and priorities of consumers, influencing their choices among different goods, services, or outcomes.