What are private property rights? Private property rights are:
A. the rights individuals but not firms have to the exclusive use of tangible, physical property and intellectual property.
B. the rights individuals and firms have to the exclusive use of intellectual property but not tangible, physical property.
C. the rights individuals and firms have to the exclusive use of tangible, physical property and intellectual property. Your answer is correct.
D. the rights individuals have to the exclusive use of intellectual property and firms have to the exclusive use of tangible, physical property.
E. the rights individuals and firms have to the exclusive use of tangible, physical property but not intellectual property.
What role do they play in the working of a market system? Private property rights:
A. encourage a significant number of people to be willing to risk funds by investing them in business.
B. encourage firms to spend money on research and development.
C. are the basis for international trade.
D. determine what goods and services will be produced.
E. both a and b.

Property can be defined as the theoretical and legal rights of firms and individuals to own tangible, physical and intellectual property. Property rights make the basis of how economic goods can be used and owned.

The four components of property rights are:

The right to use property
The right to earn from the property
The right to transfer or destroy property
The right to enforce property rights

These components of property rights encourage people to spend money on their property. A large number of people are encouraged to invest in the business.

Firms will spend money on research and development as they have property rights and they can use their research to earn a profit.