________ Damages Are Awarded to Punish the Defendant and to Deter

question 26

Multiple Choice

________ damages are awarded to punish the defendant and to deter others from similar conduct.

• A) Punitive
• B) Compensatory
• C) Nominal
• D) Retaliatory
• E) Revenge

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Definitions:

Tax Revenue

The income that the government receives from taxation of individuals and businesses.

Federal Government

The national government of a federal state, which holds sovereignty over broad aspects of governance, such as defense, foreign affairs, and monetary policy.

Payroll Taxes

Taxes imposed on employers and employees, based on the wages and salaries paid to workers, used to fund social security and healthcare services.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often resulting from industrial activity, where the negative effects are felt by others, such as pollution.