A Normative Economic Statement

question 73

Multiple Choice

A normative economic statement

• A)is a hypothesis used to test economic theory
• B)is a statement of fact
• C)is a statement of what ought to be, not what is
• D)indicates what will occur if certain assumptions are true
• E)enables economists to test hypotheses

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Definitions:

Separate Contractual Obligation

An independent commitment within a contract, not reliant on the performance or fulfillment of other obligations within the same agreement.

Contractual Relationship

A legally binding agreement between two or more parties, creating mutual obligations enforceable by law.

Unjust Enrichment

A windfall that one party to a contract stands to make at the expense of the other.

Collateral Contract

A separate contractual obligation that can stand alone, independent of the written contract.