The First Major Application of the Doctrine of Strict Liability

question 77

Multiple Choice

The first major application of the doctrine of strict liability for consumer products was in the area of:

• A) automobiles
• B) tobacco
• C) glass windshields
• D) tires
• E) none of the other choices

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Definitions:

Marginal Utility

The surplus enjoyment or utility obtained from the consumption of one extra unit of a good or service.

Budget Line

A line that shows the different combinations of two products a consumer can purchase with a specific money income, given the products’ prices.

Marginal Utility

The additional satisfaction or utility a consumer gets from consuming one more unit of a good or service.

Total Utility

The total satisfaction received from consuming a particular quantity of a good or service.