Which of the Following Best Demonstrates the Concept of Vicarious

question 42

Multiple Choice

Which of the following best demonstrates the concept of vicarious liability?

• A) A man's dog runs out of the house and mauls a letter carrier.
• B) A cow leaves its pasture, walks into the garden of another farmer and destroys all the farmers crops.
• C) Jack is employed by Jim as a trainees mechanic. Jack goes to a party and is asked by a friend, Mary, to check her car that won't start. Jack checks the car. A few minutes after Mary drives away, the car's ignition explodes.
• D) Jack is employed by Jim as a trainee mechanic. Jim's sister, Maggie brings her car to the shop. It has an engine problem. Jack has never worked on a car's engine before. Jim asks Jack to work on the engine. Jack works on the engine. Later when Maggie drives off in the car, the engine explodes.
• E) none of the above

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Definitions:

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue that comes from selling an additional unit.

Long-run Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity supplied by producers over a longer period, when all inputs can be fully adjusted.

Break-even Point

The financial state at which total costs and total revenues are equal, indicating that a business or project is neither at a loss nor making a profit.

Shutdown Point

The price and output level at which a firm's revenue just covers its variable costs, below which it is better for the firm to temporarily cease operations.