Final answer:
The free-market perspective views property rights as essential for economic growth, providing individuals and firms the freedom to use their property as they see fit, with the government's role being to protect these rights and enforce contracts.
Step-by-step explanation:
The free market perspective holds that property rights are vital for the functioning of a healthy economy, as they allow individuals and firms to own and utilize their property to their greatest potential, which includes trading or selling it. These rights are fundamental in the creation of a legal environment where economic transactions can be made securely, fostering trust and thereby encouraging economic activity.
This perspective also suggests that with well-defined property rights, individuals have an incentive to account for external costs and act responsibly regarding the use of their property for the benefit of overall economic growth.
On the other hand, contractual rights stem from property rights, enabling individuals to enter into contracts with the confidence that these agreements will be enforced by the legal system. This security is crucial as it reduces the risk associated with transactions and promotes business and commerce.
From the free market viewpoint, the role of government should predominantly be to ensure the protection of these rights and provide a legal framework where disputes can be resolved without resorting to violence, thus allowing markets to operate effectively and individuals to exercise their economic freedom.