Question

Property rights are important because they Multiple Choice oints ensure an equal distribution of income. encourage cooperation by improving the chances of mutually agreeable transections guarantee that any exchange will make all parties better off than prior to the exchange.

Answer 1

Property rights are legal entitlements with many features like it can be enforced, the right to sell or transfer the economic good, the owner can use the good to earn income and necessarily he/she can use it. It does not necessarily encourage equal distribution of income. One having rights over more resources are more likely to have more income. Even the exchange cannot both the parties better off as the party with whom the property right is there will only be better off. Property right encourages legally mutual agreement between the owner (the right holder) and other parties. So the answer is

Property rights are important because they -encourage cooperation by improving the chances of mutually agreeable transactions.