Damages Intended to Give Injured Parties Enough Money to Restore

question 437

Multiple Choice

Damages intended to give injured parties enough money to restore them to the economic position they were in before the injury are known as:

• A) punitive damages
• B) compensatory damages
• C) nominal damages
• D) all of the other specific choices are correct
• E) none of the other specific choices are correct

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Definitions:

Over-optimism

The tendency to overestimate the likelihood of positive outcomes in the future.

Consumer

An individual or group that purchases goods or services for personal use.

Perceived Budget Line

A graphical representation of all possible combinations of goods that a consumer can purchase with a given budget, based on their perception of available resources.

Equilibrium

A state in which economic forces such as supply and demand are balanced and in the absence of external influences, the values of economic variables will not change.