According to the Zone of Danger Rule

question 18

Multiple Choice

According to the zone of danger rule,

• A) only bystanders who are outside the zone of danger are responsible for negligence.
• B) only bystanders who are in the zone of danger can recover for negligent infliction of emotional distress.
• C) bystanders cannot recover for physical harm.
• D) bystanders cannot recover for emotional distress.

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Definitions:

Financial Well-Being

A state of being wherein an individual or family has control over their finances, can absorb a financial shock, is on track to meet financial goals, and has financial freedom to make choices that allow them to enjoy life.

Prospect Theory

Prospect Theory is a behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are unknown.

Status Quo Bias

The tendency most people have when making choices to select any option that is presented as the default (status quo) option. Explainable by prospect theory and loss aversion.

Behavioral Economics

A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors affect economic decisions.