Which of the following is true?
A) All types of environmental problems can be solved merely by the enforcement of individual property rights.
B) Environmental regulation cannot improve environmental quality.
C) Income levels exert little impact on the demand for environmental quality.
D) Markets often result in outcomes that are inefficient when it is difficult to assign and enforce property rights.

Question

Quizplus · Accepted Answer

This is the only option that is true. Market outcomes are often inefficient when property rights cannot be assigned and enforced, leading to externalities and market failures. Individual property rights can help address some environmental problems, but not all. Environmental regulation can also improve environmental quality. Income levels often have a significant impact on the demand for environmental quality, as higher-income individuals tend to value and demand more environmental amenities.

Which of the Following Is True