Which of the Following Is Not a Reason for the Passage

question 33

Multiple Choice

Which of the following is not a reason for the passage of compensation statutes?

• A) to give wrongfully convicted persons lots of money
• B) to provide funds for psychological counseling services
• C) to give wrongfully convicted persons money for legal fees
• D) to compensate wrongfully convicted persons for the time they have spent in prison

---

Definitions:

Positive Externality

A benefit that affects someone who did not choose to incur that benefit, typically associated with public goods or services, like education or vaccination.

Market Inefficiency

A situation where resources are not allocated optimally, leading to a waste of resources or an inability to reach market equilibrium.

Supply And Demand Diagram

A graphical representation of the relationship between the quantity of a good or service that suppliers are willing to offer and the quantity that consumers are willing to purchase at various prices.

Negative Externality

occurs when a product or decision results in a negative effect on a third party who is not involved in the transaction or decision.