Proponents of No-Fault Automobile Legislation Argue That the Tort-Liability Insurance

question 32

Multiple Choice

Proponents of no-fault automobile legislation argue that the tort-liability insurance system:

• A) pays too much for big claims and too little for small claims
• B) pays claims too quickly and passes the increased cost on to motorists
• C) encourages bad driving and accidents
• D) is not efficient in returning dollars to automobile accident victims

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Definitions:

Pure Monopolist

A single seller in a market with no close substitutes for the product, giving the seller significant control over prices.

Maximum Profit

The highest possible financial gain a business can achieve from its operations, given its costs and revenue structure.

Minimum Loss

The lowest possible amount of financial detriment that a business or individual can incur under given circumstances.

Rent-seeking

An economic concept describing the practice of gaining wealth without any contribution to productivity, typically by manipulating the social or political environment.