Posner - Law and Econ

The scope of economics has expanded to include __________ behavior beyond market transactions.

Nonmarket behavior.

Some areas of law in which the use of economics is not controversial include __________ and corporate law.

Antitrust law.

The three basic premises of the economic analysis of law are: (1) People act as rational maximizers of their satisfaction when making nonmarket decisions, (2) Rules of law operate to impose __________ on activities.

Prices.

Fencing-out is a system where the owner must build a fence to sue for damages, whereas fencing-in requires __________ to prevent damage.

Cattle owners to build a fence.

Ex ante regulation seeks to __________ harm before it occurs.

Prevent.

A law that limits the ability to sue for defamation can lead to __________ of defamation costs for victims.

High recovery difficulty.

Public figures have a substitute for legal action in defamation cases since they can __________ their side of the story.

Tell.

Posner's school prayer argument hinges on the need to demonstrate that school prayer produces __________.

Positive externalities.

The Supreme Court's secularist stance may have increased the demand for __________.

Religion.

Gary Becker views the family as a __________ that optimizes utility through division of labor.

Factory.

Increased female employment can disrupt comparative advantage and contribute to __________ rates.

Higher divorce.

Marriage-specific investments like raising children increase the value of __________ relationships over time.

Enduring.