Strict Liability

question 4

Multiple Choice

Strict liability:

• A) does not apply to someone who exercises reasonable care.
• B) is described as liability without fault.
• C) is a part of contributory negligence.
• D) cannot be applied to things that are "unreasonably dangerous."

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Definitions:

Economic Decisions

The choices made by individuals, businesses, governments, and other groups that affect the allocation of resources and the distribution of goods and services.

Excess Burdens

The economic inefficiencies that result from implementing a tax, often causing changes in consumption and production behaviors that lead to a loss in social welfare.

Nonneutral Taxes

Taxes that affect economic choices, potentially leading to inefficiencies or changes in market behavior, unlike neutral taxes which do not alter decision-making.

Externalities

Effects of a production or consumption activity on other parties not directly involved in the transaction, which may be either positive or negative.