Final answer:
The common law governs contracts for services, employment, and real estate, which means 'all of the above' is the correct answer. These contracts are based on the understanding that legal recourse is available in cases of noncompliance, emphasizing the importance of a reliable legal system for economic growth.
Step-by-step explanation:
The common law governs contracts for services, employment, and real estate, so the correct answer is 4) all of the above. Contractual rights, which are based on property rights, allow individuals and firms to make agreements with others on the use of property, providing legal recourse in case of noncompliance. For example, an employment agreement between a surgeon and a patient involves the expectation of payment in exchange for surgical services. In this scenario, failure to pay for services rendered would be considered a theft of property, the property being the services provided by the surgeon. A sound legal system that enforces contractual rights is essential, as it gives individuals the confidence to enter into contracts without fearing non-payment, thus facilitating economic growth.