Question

Mark each statement either “TRUE” or “FALSE”

1. Precedent refers to the practice of resolving similar cases in a similar fashion.

2. Common law systems employ an adversarial process in which the judge acts as a neutral referee who makes the lawyers for each side follow the rules of procedure and evidence.

3. Juries are more frequently employed in common law countries like the U.S. than in civil law countries like France.

4. In a legal dispute, the person who is alleged to have injured the victim is called the “plaintiff.”

5. Perfectly competitive markets are Pareto Efficient.

6. All Kaldor-Hicks improvements are also wealth improvements.

7. All wealth improvements are also Pareto improvements.

8. All wealth improvements are also Kaldor-Hicks improvements.

9. All Kaldor-Hicks improvements are also Pareto improvements.

10. All Pareto improvements are also wealth improvements.

11.If the risk free real rate of return is 10% per year, then the present value of $100 paid next

year is $90.

12. If Bernie’s annual discount rate is 0.9, then he values $100 paid next year at $90.

Answer 1

1) The statement is true. Precedent means resolving similar cases in a similar fashion by taking into consideration earlier cases.

2) The statement is true. The judge acts as a neutral referee in the common law system.

3) The statement is true. Juries are more frequently employed in the U.S.

4)The statement is false. Plaintiff is the party who brings the case.