The federal district courts have the authority to hear civil cases involving citizens of different states when the claim exceeds what amount?

The correct answer is diversity jurisdiction. This legal principle enables federal district courts to hear civil cases where the parties are citizens of different states, and the amount in controversy exceeds a specified threshold, typically $75,000. The purpose of diversity jurisdiction is to provide a neutral forum for legal disputes that might involve bias in state courts, ensuring that cases with parties from different states are adjudicated fairly.

In scenario comparisons, federal question pertains to cases involving issues of federal law, while incorporation relates to the incorporation of rights under the Fourteenth Amendment to apply to the states. Selective jurisdiction is not a recognized term in this context and does not pertain to the jurisdiction of federal courts. Thus, diversity jurisdiction stands out as the correct response to the question related to the monetary threshold and the geographical diversity of parties involved in civil litigation.