Which of the Following Is the General Goal of Compensatory

question 39

Multiple Choice

Which of the following is the general goal of compensatory damages?

• A)to find a way to help the defendant avoid jail time for his or her crime
• B)to restore the plaintiff to the position he or she was in before the injury
• C)to punish the defendant for extreme and outrageous conduct
• D)to make the defendant suffer as much as the plaintiff suffered

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Definitions:

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often justifying government intervention.

Monopoly

A monopoly exists when a single entity exclusively controls the supply of a particular good or service, often limiting competition.

Externalities

Economic side effects or consequences of commercial activities that affect other parties without being reflected in costs.

Price Mechanism

The process through which prices rise and fall as a result of changes in supply and demand, determining the allocation of resources in a market economy.