property rights

Question 1

property rights

Answer 1

a bundle of entitlements defining the owners rights, privileges, and limitations for use of a resource
help people form expectations

Question 2

transaction

Answer 2

two bundles of property rights are exchanged

value of these bundles of rights determines the value of the exchange

Question 3

universality or specificity

Answer 3

all resources are privately owned and all entitlements are completely specified

Question 4

exclusivity

Answer 4

all benefits and costs accrued as a result of owning and using the resource accrue to the owner and only the owner

Question 5

transferability

Answer 5

all rights can be transferred in voluntary trades

Question 6

enforceability

Answer 6

property rights should be secure from involuntary seizure from others

Question 7

primary function of property rights

Answer 7

promote efficiency

guide incentives to achieve a greater internalization of costs and benefits

Question 8

rights normally reserved by the government

Answer 8

• right to tax
• right to police
• right of eminent domain
• right to tale estate if no heirs and no will

Question 9

eminent domain

Answer 9

the government can offer you compensation for taking rights away from you if it will benefit society