Sia
Question
Microeconomics
Posted 9 months ago
What are the elements of property rights that help markets function?
Choose 1 answer:
A central planning of resource use, central planning of allocation of goods, centrally set prices
(B) durability, portability, divisibility
(C) non-rivalry and non-excludability
(D) exclusivity, enforceability, and transferability
(E) rivalry and non-excludability
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Answer from Sia
Posted 9 months ago
Solution
a
Understanding Property Rights: Property rights are essential for the functioning of markets as they define the legal parameters of ownership and trade
b
Analyzing the Options: Central planning (Option A) is not related to property rights but to a different economic system. Durability, portability, and divisibility (Option B) describe characteristics of money rather than property rights. Non-rivalry and non-excludability (Option C) define public goods, not property rights. Rivalry and non-excludability (Option E) also relate to goods' characteristics, specifically common resources
c
Identifying Correct Elements: The elements that help markets function through property rights are exclusivity, enforceability, and transferability (Option D). These ensure that owners can control their property, have their rights legally protected, and can transfer property to others
Answer
D - exclusivity, enforceability, and transferability
Key Concept
Property Rights in Markets
Explanation
Property rights, including exclusivity, enforceability, and transferability, are fundamental to the functioning of markets as they allow for the secure ownership and exchange of goods and services.
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