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.

Question

Quizplus · Accepted Answer

When property rights are not clearly defined and enforced, it leads to weakened incentives for specialization, loss of potential gains from trade, and resources being diverted to protection rather than production, making all options correct.

If Property Rights Are NOT Clearly Defined and Enforced, Then