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    Created by @anne

    What are the two meanings of property rights in economics?

    Legal and economic rights.

    How do legal property rights differ from economic property rights?

    Legal rights are assigned by the state; economic rights involve actual use.

    What does it mean for legal rights to be neither necessary nor sufficient for economic rights?

    Legal rights can be costly to enforce and not needed for efficient resource use.

    What can prevent the exercise of legal rights?

    High enforcement costs or social norms.

    What is an example of a legal right that may be too costly to enforce?

    Rights to a chunk of the Pacific Ocean.

    What can happen when two owners recognize a boundary without legal rights?

    They can still use the resource efficiently.

    What are de facto rights?

    Rights recognized and respected by owners without formal legal backing.

    What determines the incentives for resource use?

    Property rights influence how resources are utilized.

    What are property rights?

    They define relationships between owners and others regarding resources.

    How do property rights vary?

    They range from open access to fully specified private rights.

    What is open access?

    Anyone can use the asset without restrictions.

    What are absolute property rights?

    They are exclusive rights directed against all others.

    What distinguishes relative property rights?

    They grant power against specific individuals only.

    What are the components of a full set of private rights?

    Includes rights to use, exclude, derive income, sell, and bequeath.

    What is a commons arrangement?

    Access is limited to a select group with circumscribed use rights.

    What are claims rights?

    Rights to control others' rights, often through social norms.

    What are liberty rights?

    Rights to act in specific ways without interference.

    What role does the state play in property rights?

    Defines, interprets, and enforces property rights.

    Why might some rights be left as open access?

    Due to the costs of defining and enforcing all property rights.

    What happens when the state leaves attributes as open access?

    Individuals may expropriate use rights through various means.

    How can individuals capture property rights?

    Violence may be used as a strategy in some situations.