To be effective in facilitating exchange, property rights must be:
A) exclusive.
B) nontransferable.
C) nonexclusive.
D) defined to give complete freedom to the owner to use the property in any way the owner chooses.

Question

Quizplus · Accepted Answer

Property rights must be exclusive, meaning that only the owner has the right to use, sell, or transfer the property. This ensures that there is no ambiguity or confusion about who has the right to control the property, which is essential for facilitating exchange. Nontransferable (choice B) and defined to give complete freedom to the owner to use the property in any way the owner chooses (choice D) are incorrect because they do not ensure clear and transferable property rights. Nonexclusive (choice C) means that multiple parties have the right to use the property, which can create complications and hinder exchange.

To Be Effective in Facilitating Exchange, Property Rights Must Be