The statement below that best describes property rules and liability rules is:

Property rules are preferred in situations where high transaction costs are likely to prevent bargaining.

Property rules give rise to the least amount of state intervention $-$ once the original entitlement is decided upon, the state does not try to decide its value.

The harm is greater from violating an entitlement protected by a property right than one protected by a liability rule.

A right is protected by a property rule if someone can get away with destroying it so long as she pays the cost.