Which of the Following Statements Is TRUE

question 62

Multiple Choice

Which of the following statements is TRUE?

• A)While the courts are relatively reluctant to impose a duty of care if the defendant's careless statement caused the plaintiff to suffer a pure economic loss, a duty of care almost always exists if the defendant's careless act caused the plaintiff to suffer a psychological injury.
• B)The sudden peril doctrine falls within the standard of care issue.
• C)The concept of reasonable foreseeability is relevant to the issues of causation and standard of care, but not to the issue of duty of care.
• D)Because life and health are more important than dollars and cents, the standard of care is not influenced by the amount of money that the defendant would have to spend in order to reduce the risk of injury to the plaintiff.
• E)"Joint liability" means that the defendant has been held liable for causing two or more accidents.

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Definitions:

Multiplier

The factor by which an initial change in spending will alter total economic output, usually in the context of fiscal or monetary policy.

MPC

Marginal Propensity to Consume, which is the proportion of additional income that a consumer spends on goods and services as opposed to saving it.

Capital Goods

Long-term assets such as buildings, machinery, and equipment used in the production of goods and services.

Money Supply

The overall sum of money available in an economy at a designated moment.