Which type of damages encompasses both measurable costs and intangible costs such as pain and suffering?

The correct choice is compensatory damages, which refers to the form of restitution awarded to an injured party that covers both quantifiable costs—such as medical bills, lost wages, and property damage—as well as intangible costs like pain and suffering. This category of damages is intended to make the injured party whole again by addressing both financial losses and emotional distress.

Compensatory damages are fundamental to personal injury claims, as they acknowledge the full scope of the victim’s experience. When establishing a claim, the goal is to quantify all types of harm suffered, not just physical or financial impacts. This is essential in legal contexts where emotional pain and suffering significantly affect an individual's quality of life and overall well-being.

The other types of damages listed do not combine these aspects in the same way. General damages specifically address non-economic losses, such as pain and suffering, but do not typically include the measurable costs that compensatory damages cover. Actual damages usually refer to the direct, tangible losses suffered as a result of an incident, while exemplary damages are intended to punish the wrongdoer and deter future misconduct, and do not directly relate to compensating the victim. Thus, compensatory damages encompass the broad range of both economic and non-economic losses experienced by the affected party.