Which of the following is NOT a likely consequence of weakly established or absent property rights?

Choose 1 answer:
(A) uncertainty about ownership claims
(B) innovation
(C) prices that do not reflect the true value and cost of something
(D) overuse of a resource
(E) pollution

Question

Which of the following is NOT a likely consequence of weakly established or absent property rights?

Choose 1 answer:
(A) uncertainty about ownership claims
(B) innovation
(C) prices that do not reflect the true value and cost of something
(D) overuse of a resource
(E) pollution

Accepted Answer

***B*** ∻Key Concept∻ ⚹Innovation and Property Rights⚹ ∻Explanation∻ ⚹Innovation is often encouraged by strong property rights, which provide an incentive for inventors and companies to develop new products and technologies, knowing they can benefit from their investments. Weak or absent property rights can actually deter innovation because the returns on investment are uncertain.⚹◊One related question in Macro Economics could be: What impact does weak property rights have on a country's overall economic growth and development?⍭ Generate me a similar question◊

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