A Group Claiming a Violation of Consumer Protection Laws May

question 16

Multiple Choice

A group claiming a violation of consumer protection laws may seek redress by bringing a(n)

• A) derivative action.
• B) individual action.
• C) class action.
• D) pro bono proceeding.

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Definitions:

Economic Efficiency

A condition where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Ability-To-Pay Principle

The ability-to-pay principle in taxation suggests that taxes should be levied based on an individual's or entity's capacity to pay, meaning those with higher income should pay more.

Cigarette Taxes

Taxes imposed on the sale of cigarettes to discourage consumption and raise government revenue, often used for public health initiatives.

Wedge

The difference between the demand price of the quantity transacted and the supply price of the quantity transacted for a good when the supply of the good is legally restricted. Often created by a quantity control, or quota.