Without private property rights, people:

• A. have less incentive to conserve resources
• B. always maximize social welfare
• C. face no opportunity costs
• D. can freely allocate resources efficiently

Answer: (A)

Verified step by step guidance

1. Understand the concept of private property rights: these rights allow individuals to own, use, and transfer resources or goods, which creates incentives for efficient use and conservation.
2. Analyze what happens without private property rights: when no one owns a resource, there is less motivation to conserve or manage it sustainably because individuals do not directly benefit from preserving it.
3. Consider the role of incentives in economics: incentives encourage people to make decisions that maximize their own benefit, which often leads to efficient resource allocation when property rights are well-defined.
4. Evaluate the options given: without private property rights, people do not necessarily maximize social welfare, nor do they face no opportunity costs, and efficient allocation is unlikely because of the lack of ownership incentives.
5. Conclude that the most accurate statement is that without private property rights, people have less incentive to conserve resources, as the absence of ownership reduces motivation to manage resources responsibly.