If property rights are not clearly defined and enforced, then
A)resources are devoted to protecting possessions rather than to production.
B)incentives for specialisation based on comparative advantage are weakened.
C)some potential gains from specialisation and trade are lost.
D)All of the above answers are correct.

Question

Quizplus · Accepted Answer

Without clear property rights, resources are wasted on protection, specialization incentives are reduced, and potential gains from trade are lost.

If Property Rights Are Not Clearly Defined and Enforced, Then