Insecure property rights induce owners of productive assets to
A) discount expected income from their ownership at a very low rate.
B) place a higher value on those assets if they want to sell them.
C) use those assets more cautiously to reduce depreciation.
D) do all of the above.
E) do none of the above.
Question 2
Suppose a judge is trying to decide whether, as a matter of fact, homeowners currently possess the right to prevent airplanes from flying low over their houses. The judge's ruling is correct if his decision results in
A) a fall in the market value of the houses.
B) a rise in the market value of the house.
C) no change in the market value of the houses.
D) uncertainty about the market value of the houses.
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