Jim Was a Mechanic

question 4

Multiple Choice

Jim was a mechanic.One day when he attempted to weld a car's gasoline tank,it exploded and he was hurt.He filed to collect workers' compensation.His employer resisted on grounds that Jim had been negligent and had also violated the express regulations of the company when he attempted to weld a gasoline tank.Which statement is correct?

• A)Jim cannot recover if it is shown that his negligent conduct caused the explosion.
• B)Jim cannot recover if it is shown that he violated the express regulations of his employer.
• C)Workers' compensation doesn't apply in situations like this.
• D)Jim can recover even if he was negligent and violated the employer's rules.

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Definitions:

Multiplier Effect

The relative change in net income resulting from an addition or reduction in expenditure.

Crowding out

A situation in economics where increased government spending displaces private sector spending, either through higher taxes, higher interest rates, or borrowing.

Government Expenditures

The spending by the government sector on goods and services, including public services and public investment.

Multiplier

An economic factor that quantifies the effect of a change in fiscal or monetary policy on the overall economy, such as how an increase in government spending can lead to a larger increase in national income.