ECO320H1 Final: exam answers
Document Summary
Economics 320f an economic analysis of law. Please answer all parts of the exam in the exam booklet provided. This test will be marked out of 50. The marks for each question are noted throughout the exam. Comment on two of the following: a non-voluntary transaction never increases utility. See discussion on page 453 of text: in general goods that are acquired through voluntary exchange, because such exchange guarantees that goods move to those who value them the most and, in doing so, makes both parties better off. Goods that exchange hands without the consent of both parties as by theft do not carry this same guarantee. however, this does not imply that it is not possible for a non-voluntary transaction to increase utility. For example, the mb to the person(s) taking a good may be very high and the mc to the person from whom it was taken may be very small.
