Some Characteristics of the Judicial System and Regulatory Environment Increase

question 12

Multiple Choice

Some characteristics of the judicial system and regulatory environment increase the frequency and severity of loss.This hazard is called

• A)moral hazard.
• B)physical hazard.
• C)attitudinal hazard.
• D)legal hazard.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive by selling it at the market price.

Total Surplus

The sum of consumer and producer surplus; represents the total net benefit to society from the production and consumption of a good or service.

Deadweight Loss

Economic efficiency is lost when the balance for a good or service is either not met or unattainable.

Tariff

A tax imposed on imported goods and services to regulate trade, increase government revenue, or protect domestic industries.