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Question
When no property rights exist,
A) no one has an economic incentive to care for common property, and an externality may well occur.
B) there will be no production.
C) externalities will be internalized by voluntary arrangements among a small group of parties.
D) society will produce beyond the production possibilities frontier, but the allocation of resources is not apt to be optimal.
Answer
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Related questions
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Which of the following statements is FALSE?
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