The Nature of Employer Liability Changed in the 19th Century

question 10

Multiple Choice

The nature of employer liability changed in the 19th century through judicial instrumentalism and had what effect?

• A) Reducing the risks and the costs of business, making business enterprise more daring and profitable than it would have been otherwise.
• B) Increasing the risks and the costs of business, making business enterprise more daring and profitable than it would otherwise have been.
• C) Continuing the older doctrine that employers could be found guilty of contributory negligence, thus increasing the employer's liability for worker injury.
• D) None of the above were effects of the changes to the nature of employer liability.

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Definitions:

Hidden Characteristics

Traits or features of a product or service that are not immediately observable to the buyer, potentially leading to information asymmetry.

Psychology

The scientific study of the mind and behaviors, encompassing a wide range of topics from cognitive processes to social interactions.

Economic Behavior

The study of how individuals, households, and organizations make choices to allocate scarce resources.

Moral Hazard

Moral hazard refers to a situation where one party is more likely to take risks because they do not have to bear the full consequences of their actions.