How is the story "The Clever Magistrate" a folktale?

Because its telling a fiction story or a tale of magical beliefs

Explanation:

A folk tale is a simple story that has been shared and told to many people over the years. Folk tales generally reflect the culture they come from. The plot of a folk tale involves simple events and problems. The setting and the events reflect the traditions of the tale's culture.

Folk tales often share a life lesson. The theme of a folk tale is usually a timeless and universal message that relates to most people. In fact, the same theme may appear in tales from different cultures.