Question

Based on the role of property rights, in which of the following scenarios would individuals be incentivized to solve or ignore the problem? Solve the Problem A homeowner spills tomato sauce on the carpet. Students leave trash on cafeteria tables after lunchtime. Sports fans celebrate a victory by spraying foam on cars in the parking lot, including their own. People throw trash out the window while driving. A dog walker does not clean up after his dog on a neighborhood trail.

Answer 1

Explanation:

                  When the individual has property rights, the individual is incentivized to solve the problems. On the other hand, the individual ignores the problem when there is absence of property rights.

                 Therefore based on the property rights, the individual will solve the problems on the following :

1. A home owner spills tomato sauce on the carpet.

2. Sport fan celebrate a victory by spraying foam on cars in the parking lot, including their own.

           Individual will ignore the problem on the following :

1.  People throw thrash out the window while driving.

2. Students leave trash on cafeteria tables after lunch time.

3.  A dog walker does not clean up after his dog on the neighborhood trail.