Which of the following would be the most likely effect of a 75 percent tax on punitive awards by juries?
A. An increase in pretrial settlements since plaintiffs are willing to accept lower settlement amounts that are not taxed
B. A decrease in the number of cases settled out of court
C. An increase in the incentive for plaintiffs to pursue legal action against individuals or businesses who have caused injury due to gross negligence
D. An increase in the number of lawsuits asking for punitive damages
Answer: A
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For a demand schedule, which of the following is held constant?
A) relative prices B) quantity demanded C) quality of the good D) nominal prices
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A) $13,500. B) $11,500. C) $2,000. D) $500.
Rising prices of resources leads to inefficient resource use by industry
a. True b. False Indicate whether the statement is true or false