suppose that instead of each farmer in an area owning a specific parcel of land, all farmland is pooled together. the profits that remain from all of the pooled farmland is divided among all of the participating farmers equally. which is the most likely consequence of a property right system like this being used?

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06-12-2022
Business

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suppose that instead of each farmer in an area owning a specific parcel of land, all farmland is pooled together. the profits that remain from all of the pooled farmland is divided among all of the participating farmers equally. which is the most likely consequence of a property right system like this being used?

Sagot :

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vrinda347 vrinda347 · Answer 1 · 2022-12-13T04:53:18-05:00

A property right structure like this would most certainly result in free riding from multiple farmers on the land.

How Do Property Rights Work?

The definition of property rights appears to be relatively simple at first. Property rights, whether intangible or physical, are what we refer to as a right to certain property. Property rights are often crystal clear. If you possess a vehicle and have a title in your name, you are the rightful owner of the property rights to drive, sell, lend, lease, or scrap the vehicle.

What makes property rights so crucial?

They enable governments to collect property taxes, which are required to finance the provision of infrastructure and services to citizens, and they give individuals and businesses the confidence to invest in land. They also permit private companies to borrow money using land as collateral to create more job opportunities.

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Sagot :

How Do Property Rights Work?

What makes property rights so crucial?

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