Final answer:
Economic capacity or buying power is the ability of market participants to purchase property, enabled by the enforcement of property rights and contractual rights that facilitate market transactions and contribute to economic growth.
Step-by-step explanation:
The ability of market participants to purchase a property is called economic capacity or buying power. This concept is intricately linked to property rights and contractual rights, which are foundational to market transactions and economic growth. Property rights allow individuals and firms to own and use property as they see fit, while contractual rights enable them to enter into agreements with others concerning the use of their property.
For effective market participation, societies must ensure the enforcement of contracts and provide a legal environment that allows individuals the optimal use of their property, including the right to trade or sell. This legal backdrop secures the ability to enter into contracts without an overarching fear of non-payment, thus facilitating business transactions and contributing to economic growth.