________ Are Intended to Punish Flagrant Wrongdoers and to Deter

question 11

Multiple Choice

________ are intended to punish flagrant wrongdoers and to deter them.

• A)Compensatory damages
• B)Punitive damages
• C)Liquidated damages
• D)Tort damages

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Definitions:

Net Welfare Loss

The decrease in total societal wellbeing and efficiency due to factors such as market failure or government intervention.

Tariff

A levy placed by a government on goods that are brought into or sent out of a country.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Specific Tariff

A type of tax levied on imports that is based on a specific amount of money per unit of the good imported, rather than on its value.