Answer the following statements true (T) or false (F)
1) The American Rule states that the plaintiff must pay their legal fees only the court rules in favor of the defendant.
2) The actual amount a plaintiff will win in a lawsuit is a random variable.
3) From an economic perspective, the decision to settle or litigate depends on actual guilt or innocence.
4) If the expected loss from litigation exceeds the expected gain, the defendant has an economic incentive to settle.
5) If the expected loss from litigation exceeds the expected gain, the defendant has an economic incentiv333) The larger a defendant's expected payment to a plaintiff, the more likely the case will be settled regardless if the expected payment is high due to the plaintiff's probability of winning, or if there is a large potential damage payment.e to settle.
1) FALSE
2) TRUE
3) FALSE
4) TRUE
5) TRUE
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In macroeconomics, the long run is determined by:
A. how long it takes for prices of inputs to adjust through the whole economy. B. how long it takes for firms to vary all input quantities. C. the longest contract length of a business. D. how long it takes for output decisions to adjust to changes in economic conditions.
A $25 government subsidy paid directly to buyers of jeans will result in
a. a downward shift in the demand curve for jeans by $25. b. an upward shift in the demand curve for jeans by $25. c. a downward shift in the supply curve for jeans by $25. d. an upward shift in the supply curve for jeans by $25.
The Fed can increase the money supply by conducting open-market
a. sales or by raising the discount rate. b. sales or by lowering the discount rate. c. purchases or by raising the discount rate. d. purchases or by lowering the discount rate.
GDP uses the market value of goods and services because it:
A. provides the opportunity to compare lists of outputs to see who produced more. B. markets are the only way to value goods and services. C. provides a common valuation that allows us to compare one economy to another. D. is the only data that can be gathered about goods and services.