JURI 620 Quiz 3

  1. From a law and economics perspective, is income inequality a problem? What about wealth inequality? Explain your answer.
  2. Is a food stamp program likely to increase the nourishment of poor people? Consider the following hypothetical example. A poor family, before the food stamp program, spent $700 a year on food. The family receives food stamps with a retail value of $500. Would you expect this to affect the family’s eating habits more than a cash transfer of $500 would affect them? Explain your answer.
  3. Judge Posner, in his book Economic Analysis of Law, makes the following statement: “Compare two households. In one both husband and wife work and each earns $40,000 per year; in the other only the husband works, and he earns $80,000. The pecuniary income of the households is the same, but the real income of the second household is greater.” Explain the rationale for this statement.
  4. Discuss the following proposition: Policies designed to maximize the society’s rate of economic growth are likeliest to satisfy Rawls’s criterion of distributive justice.
  5. instrument, to invest in real estate equities? In real estate mortgages? Should he be permitted to operate a business with the trust funds, as opposed to mere passive investing? Explain your answer.
  6. Discuss the biblical principles bearing upon the design of a system of taxation.
  7. Suppose a trust instrument provides that the settlor’s widow shall receive the income from the assets of the trust for her life, after which the assets will go to her children. To fulfill his duty of impartiality, as between trust beneficiaries, without impairing the value of the trust, should the trustee invest the trust assets in common stock and distribute the dividends to the widow? Should he invest them in bonds and give her the interest? Or should he do something else? Explain your answer.
  8. Is there an economic justification for civil government programs to redistribute wealth in an effort to aid the poor? Is there a Christian worldview justification? Explain your answer.
  9. Is stock-picking likely to be an efficient investment strategy? Explain your answer.
  10. Describe the economic justification for the regulation of banks. Critique this justification from the perspective of a Christian worldview.