Reference no: EM131227583

Describe the type pf socially inefficient activity that is removed (or reduced) when a government authority establishes commitments enforcing exclusive private owner ship rights to property. (1 example) Second, what is the source of social gain from government establishing a commitment to enforce voluntary contractual agreements between private parties? An efficient government policy would prohibit private contracts that act to coordinate mutual output reductions among "rivals" in an industry that would otherwise act to enforce monopolizing conspiracies. What is the similarity between each these sources of social inefficiency that justify economically efficient government intervention?