Module 41: Property Rights

Without the guarantee of contract enforcement, people would be less willing to

- buy - sell - invest

A government protects property rights by

- deciding in court if property rights have been violated - passing laws that reinforce the strength of property rights - ensuring that property rights are well defined

Which of the following is NOT a necessity for a contract?

An exchange of money

Which of these rights is NOT included in property rights?

The right to participate in an illegal activity

Which one of these is NOT a type of property?

Unreal property

A contract is

a legal agreement

You have a right to dispose of your personal property, as you like. This, however, does NOT mean you can

dispose of the property in someone else's backyard

When you purchase milk and agree to pay the listed price, this is an example of a(n)

implicit agreement

Suppose Freddie's Farm is a commonly owned property. Ms. Lopez's farm is owned by only Ms. Lopez. It is easier to protect the property rights of Ms. Lopez's farm because

individual property rights are better defined than rights for a commonly owned property

A buyer and seller agree to a contract if

it benefits both the buyer and seller

Enforcement of contracts means

people have more confidence in contracts

In the U.S., governments can claim land from private owners only after

providing proper compensation for the land

In the U.S., governments can reclaim private land only if it is for

public development

The strength of private property rights diminishes when

these rights are not well defined