Asked by Xavier Alexandre on Jul 09, 2024
Verified
Property rights are protected by
A) taxes and subsidies.
B) bargaining and negotiation.
C) injunctions and liability rules.
D) rivalry and excludability.
Property Rights
Legal rights to use, control, and dispose of property, including land, buildings, or intellectual property.
Injunctions
Injunctions are legal orders issued by a court that require a party to do or abstain from doing specific acts.
Liability Rules
Legal principles that govern the allocation of costs for damages or harm among parties in civil lawsuits.
- Learn the role of liability rules and injunctions in the regulation of externalities.
Verified Answer
FM
Frank MorganJul 12, 2024
Final Answer :
C
Explanation :
Property rights are protected through legal means such as injunctions, which are court orders to stop an action, and liability rules, which hold individuals or entities responsible for damages they cause to others' property.
Learning Objectives
- Learn the role of liability rules and injunctions in the regulation of externalities.