The Risk-Utility Test Holds That a Product Is Negligently Designed

question 29

True/False

The risk-utility test holds that a product is negligently designed if the benefits of a product's design are outweighed by the risks that accompany that design.

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Definitions:

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good or service, including both private costs and externalities.

Garbage Disposed

The act of getting rid of waste materials generated from personal or commercial activities.

Payment Plan

An agreement between a borrower and a lender that outlines the terms for repaying a loan, typically including the loan amount, interest rate, and repayment schedule.

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming an extra unit of a good or service.