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