Asked by Griffin Appleman on May 06, 2024
Verified
Markets may fail to allocate resources efficiently when property rights are not well established.
Property Rights
Legal parameters that define the ownership and use of property, including land, buildings, and intellectual property.
Allocate Resources
The process of distributing available resources, whether material, financial, or human, among competing demands and uses in an efficient manner.
- Understand the significance of established property rights for efficient market operations.
Verified Answer
KC
Kaylin CashmanMay 07, 2024
Final Answer :
True
Explanation :
When property rights are not well established, it can lead to market failures because individuals or companies may not have the incentive to invest in or properly manage resources, leading to overuse, underuse, or misuse of those resources.
Learning Objectives
- Understand the significance of established property rights for efficient market operations.