law and econ

In a case where government takes the land for public use, the efficient rule for the for the courts to adopt is a rule of "police power regulation" and thus never compensate the landowner for the loss

False

From a Law and Economics point of view, patents are required to possess all but which of the following characteristics

They confer an exclusive right to use and sell an invention for a lifetime period of the inventor

In general property rights protection is done through all but which of the following:

Just deserts rules

Currently, patent law awards a patent for 20 years. However this period is arbitrary and patents could just as easily run 100 years with no ill effects.

False

Inalienability refers to

A rule of law that that prohibits the sale of some things under any circumstance

In the US, property rights are often defined and allocated by

All of the above

Vandalizing of street lights by residents in a local community represents

Consumer-producer negative externality

Under Property Rights Law, most dress designs and perfumes are not protected with intellectual property rights mainly because

Costs of research and development in copying dress designs and perfumes are LOWER

Property rights protection is needed for a potentially life preserving pharmaceutical because

Costs of research and development in creating such goods are higher

The advantage of the stability of decisions (stare decisis) of a legal system is that

Court decisions become more consistent and predictable Problems with similar problems are treated equally Planning and investment in the economy are done much more confidently If facts are the same, then decisions will be the same All of the above

A "Pigovian Tax" equal to the marginal cost of pollution is the least-cost solution to the problem of electric utilities polluting the air by burning coal

False

In assigning property rights "property produced by fraudulent or deceitful means", it is always most efficient to use the rule of "first possession" which says that the prior rightful owner has title superior to that of the bona fide purchaser

False

In assigning property rights to human organs, it is always most efficient to use the rule of inalienability because this rule imposes a price ceiling of zero on human organs and thus eases the social pressure on relatives and friends of patients to make a voluntary donation of organs

False

In the theory of externalities, if an externality is caused to say a paper firm polluting a river by placing dioxin in the river, then the Coasian analysis of property rights disputes implies that the most efficient solution will be to place a liability on the paper firm since it is the party causing the externality

False

The cost of a week of vacation is simply the money cost of the plane, food, etc.

False

When assigning property rights in stolen goods, it is always most economically-efficient to give the property rights to the original owner, thus placing the risk of loss on the person who buys from the thief

False

in nuisance law, it is always economically efficient for courts to use automatic injunctions no matter how slight the harm to the plaintiff and no matter how socially valuable the defendant's activity because such actions produce net social benefits

False

Courts and other organizations base their property rights allocation decisions on all but which of the following rules?

Inalienability rule

The major drawback of an inalienability rule in the market for human organisms is

It causes excess demand of human organisms

Common field agriculture which combines crop cultivation and pasturage is an example of

Mixed-property regime

In general, which of the following protects the landowner's property right in "use and enjoyment" of his or her property

Nuisance Law

The major drawbacks of permanent compensatory damages in property rights protections are all but which of the following

Once the defendant pays he/she has an incentive to abate the nuisance

In common law, legal sanctions refer to

Orders of courts that must be enforced

In the matter Lucas vs SC Coastal Council, which of the following best describe an externality that occurred

Producer-producer negative externality

Yellowstone National Park located in the US States of WY, ID, and MT is an example of

Public (res publicae) property

In general, eminent domain refers to all but which of the following

The government's most comprehensive of nuisance regulation

From a law and economics point of view, property rights refer to all but which of the following?

The right of a stock owner in a corporation to possess all corporate assets

From an economic point of view, the purpose of public nuisance law is

To internalize externalities that private actors impose on the public

In Japan, workers cannot be fired once they have been hired; therefore, in Japan a minimum wage law would not cause unemployment

True

In property rights protection, the trespass action is intended to certify title to land by enforcing the legitimate landowner's right to exclude

True

Suppose fish are a common property resource in Themeliville. However, fishermen in Pugot Sound are granted exclusive use to certain lakes and oceans in Themeliville. The economic theory of property rights predicts that the fish in Themeliville will be overfished more quickly than in Pugot Sound.

True

The Coase Theorem implies that, if transactions costs are low, the parties involved in a property rights dispute will have no incentive to argue their case in court, since an economically efficient result can be achieved by bargaining

True

The economic justification for intellectual property rights is that the system often creates incentives for investment in socially useful innovations

True

The tragedy of the commons refers to

overuse of shared common resources