5-Question Learned Quiz — Class 2.2: Minimizing Social Transaction Costs

1. According to Class 2.2 ('Minimizing Social Transaction Costs'), what acts as a 'massive hidden energy cost' across every industry on Earth?

A) Legal disputes, manual contract drafting, administrative compliance overhead, and the friction of untangling messy paper records. B) The electricity used by office lightbulbs. C) The cost of postage stamps.

2. How does fusing 'legal performance' with a 'software runtime' transform contract enforcement in Class 2.2?

A) It shifts from slow retroactive litigation after a breach to a localized micro-jurisdiction that executes the agreement start-to-finish automatically. B) It requires every contract to be argued before the Supreme Court. C) It eliminates all written terms.

3. Why does Class 2.2 warn that society 'simply cannot skip the mechanization phase' between horse-and-buggy paper law and autonomous robot lawyers?

A) Because mechanized law moves at hyper-speed—if an automated contract has a bug and executes at a million miles an hour without human-engineered guardrails, the crash is catastrophic. B) Because computers have not been invented yet. C) Because paper contracts are faster than fiber optics.

4. In Section 2 of Class 2.2, how do Ricardian contracts serve as the critical bridge in modular law?

A) By linking cryptographic hashes of standardized human-readable legal prose directly to deterministic machine-executable code. B) By translating English contracts into Morse code. C) By replacing all digital signatures with wax seals.

5. What real-world music industry failure does Class 2.2 cite to illustrate the massive transaction costs of paper chains of title?

A) Popular music catalogs are routinely double-assigned by mistake because law firms have to dig through warehouse boxes of messy paper archives to figure out who owns what. B) Musicians forgetting the lyrics to their songs. C) Record labels running out of vinyl plastic.

5-Question Learned Quiz — Class 2.2: Minimizing Social Transaction Costs