Final answer:
The bundle of rights includes legally permitted entitlements like owning, using, and transferring property, with rightful activities such as selling or leasing. Illegal uses, however, are not protected and are punishable by law.
Step-by-step explanation:
The term bundle of rights refers to a set of legal privileges that come with property ownership. These rights are the entitlements of individuals or firms to own property and utilize it according to their wishes, within the constraints of the law. Economic rights include the right of people to buy, sell, and use their private property.
One important aspect of these rights is the ability to enter into contracts involving the property. This encompasses a range of permissible actions, such as leasing, mortgaging, or transferring the property to another party. However, activities like using the property for illegal purposes, such as a drop-house for drugs or a brothel, are clearly outside the legal use of property rights and are subject to enforcement by the law.