In Which of the Following Cases Are Disputes More Likely

question 37

Multiple Choice

In which of the following cases are disputes more likely to be settled by negotiations than by court cases?

• A)When the parties involved are risk averse
• B)When time is not an important factor
• C)When court costs are low
• D)When parties have asymmetric beliefs about facts

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Definitions:

Intention

A mental state that represents a commitment to carrying out an action or actions in the future.

Neoclassical Economics

A branch of economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.

Utilitarianism

A philosophical theory focusing on outcomes and consequences, suggesting the best action is the one that maximizes utility, usually defined as maximizing happiness and reducing suffering.

Behaviorism

A psychological approach that emphasizes the study of observable behaviors and the external stimuli that lead to them, discounting the importance of internal mental states.