Economics of Public Issues (19th Edition)
19th Edition
ISBN: 9780134020532
Author: Miller
Publisher: PEARSON
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Question
Chapter 8, Problem 1DQ
To determine
If the property rights to food belonged not to that landowner where the food was grown, but instead belonged to the national government, how this affect the willingness of people to let strangers grow food on their land?
Concept Introduction:
Property Rights is defined as the legal ownership of a specific thing or resource. When property rights are well defined, then it provides an incentive for the owner to protect and care for its resources.
Expert Solution & Answer
Explanation of Solution
- When the property right of the field is shifted from the landowner to the government then the landowner will allow others to grow on the fields.
- This is because the landlord has no incentives to increase its production on the field. The farmers may allow strangers to grow food on their field if the food is claimed by the government.
- On the other hand, the landowners will increase the production only if the total share is claimed by the landowner. In this condition, the farmer will try to over-exploit their production which will degrade the fertility of the land.
- Hence, transfer of the right of ownership of land will compel landowners to allow strangers to grow on their film based on the claim over the production.
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Chapter 8 Solutions
Economics of Public Issues (19th Edition)
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