Final answer:
The 'right to use' of an identified asset is an individual or firm's ability to freely utilize their property, including entering into contracts over its use. These rights are essential for economic growth and are protected by law to ensure fairness and efficient market function. Contractual rights stem from property rights, providing a basis for legal agreements and dispute resolution.
Step-by-step explanation:
The 'right to use' of an identified asset refers to the permissions that an individual or firm has when they own a property. This includes but is not limited to their ability to utilize their asset as they deem fit, such as spending, lending, or entering into contracts with others regarding its use. Property rights are crucial for economic growth, ensuring that the market functions effectively and efficiently. They encourage the production and utilization of resources, thereby leading to the creation of other goods and services. Moreover, property rights are protected under the law, with the Fifth Amendment to the United States Constitution affirming that no one's property can be taken for public use without fair compensation.
Contractual rights are based on property rights, allowing individuals to legally enter into agreements with others about the use of their property. The effective definition and enforcement of these rights are imperative for resolving disputes and preventing conflicts, contributing significantly to a stable economic environment conducive to growth.