Which of the Following Statements Is True Regarding Alternative Compensation

question 14

Multiple Choice

Which of the following statements is true regarding alternative compensation schemes?

• A)Alternative compensation schemes are always funded by the general body of taxpayers.
• B)Alternative compensation schemes are administered by private charities.
• C)From the victim's perspective, alternative compensation schemes are usually more generous than the tort system.
• D)Alternative compensation schemes are generally premised on the basis of compensation regardless of fault.
• E)Since they are designed to minimize time spent in court, alternative compensation schemes generally prohibit both tort claims and criminal prosecutions for wrongful acts that cause accidents.

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Definitions:

Profit-Maximizing

A strategy where a firm adjusts its production and pricing to achieve the highest possible profit.

Loss-Minimizing

A strategy or approach targeted at reducing the negative impact of losses in business or investment.

Perfect Competitor

A theoretical firm in a perfectly competitive market that cannot influence the market price of its product and can only decide the amount of output produced.

Perfectly Elastic

A situation in demand or supply where quantity changes infinitely in response to any change in price.