Question

1. Indentured servitude is no longer legal. An indenture was a contract binding a person to work for another for a given length of time (usually for many years), as an apprentice to a master or an immigrant to service in a colony. Such a relationship was a way for a poor but ambitious person to immigrate to a more prosperous country. The period of servitude, however, was harsh, and the penalty for breaking the contract extreme (imprisonment or worse). Evaluate the law prohibiting such contracts with respect to the concept of pareto efficiency