What is the difference between private property and public property in a free-market system?

• A. Private property is owned by the government and managed for public use.
• B. Public property is owned by individuals or firms.
• C. Private property is owned by individuals or firms with rights to use and transfer; public property is owned by the government.
• D. Public property is owned by corporations only.

Answer: (C)

In a free-market system, the main idea is who owns a resource and what rights come with that ownership. Private property means ownership by individuals or firms, with the rights to use, enjoy, exclude others, and to transfer or sell it. Public property means ownership by the government and typically use for the benefit of all, managed and regulated by the state. This distinction captures why private property supports individual control and market transactions, while public property ensures access and accountability for public needs. The option that aligns with this is: private property is owned by individuals or firms with rights to use and transfer; public property is owned by the government.