Question

Circle the letter of the single best response

1. Which of the following reasons do the textbook authors cite in rejecting the redistributive approach to law:

a) Imprecise targeting

b) Unpredictable consequences

c) High transaction costs

d) Distortions in incentives

e) All of theabove

2. The economic approach to law emphasizes what goal for public policy:

a) Utilitarianism

b) Pareto efficiency

c) Wealth maximization

d) None of the above

3. A market failure occurs when:

a) Prices are high

b) The distribution of income is unfair

c) There is productive or allocative inefficiency

d) All of the above

4. The courts in the U.S. are

a) Organized in three tiers

b) Overseen by judges that are elected every four years

c)Amici curiae

d) None of the above

5. The common law is

a) Judge made law that may evolve over time

b) No longer used in the U.S.

c) Whatever most people think is fair

d) None of the above

6. Examples of common law countries include:

a) France

b) Germany

c) Japan

d) All of theabove

e) None of the above

Answer 1

Question 1:

Answer : e. All of above.

Textbook authors like Robert Cooter and Thomas Ulen have discussed in their textbook that imprecise targeting, unpredictable consequences, high transaction cost and distortion in incentives are main reasons for rejection in redistributive approach to private law. They have mentioned that redistributive law relies on crude averages leading to imprecise targeting, reshuffling in rights is such that court cannot predict the outcome in confident way, transaction costs are generally high and it distorts economy more compared to progressive tax