Policy

Question 1

Pareto

Answer 1

some people benefit, no one is harmed

Question 2

Kaldor-Hicks

Answer 2

the people that benefit can pay off the ones harmed

Question 3

Learned-Hand/Carroll Towing Test

Answer 3

B vs PL, legislation should incentivize the internalization of externalities

Question 4

Coase Theorem

Answer 4

efficient legislation will be reached when transaction costs are low

Question 5

Corrective Justice

Answer 5

focus on making individuals whole not societal goals

Question 6

Diminishing Utility of Marginal Income

Answer 6

as your wealth increases, marginal utility of wealth decreases

Question 7

Insurance

Answer 7

Actors are risk averse by nature, and insurance shows that one will give up small amount of money now for a lot of money when you will need it inevitably.

Question 8

Locality Rule

Answer 8

the standard of care a medical professional is expected to meet should be based on the practices and standards in their local community, rather than national or international standards