Why Does the Government's Role of Enforcing Contracts Facilitate Exchange

question 5

Multiple Choice

Why does the government's role of enforcing contracts facilitate exchange?

• A)Enforcing contracts allows people to trade with confidence that the contracts they enter will be met.
• B)Enforcing contracts guarantees consumers that the government will bail them out in case the seller does not fulfill his end of the contract.
• C)Enforcing contracts guarantees sellers that the government will bail them out in case the buyer does not fulfill his end of the contract.
• D)Enforcing the contract effectively makes the government the seller's partner in the business.

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Definitions:

Conception

The process of fertilization where a sperm cell unites with an ovum, leading to the formation of a zygote and the start of pregnancy.

Chromosomes

Threadlike structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA, carrying genetic information used in growth, development, and function.

XY

A 23rd chromosome pair that consists of an X-shaped chromosome from the mother and a Y-shaped chromosome from the father. XY zygotes become males.

Chromosomes

Threadlike structures made of DNA molecules that contain the genes and are located in the nucleus of cells.