Exhibit 1-1 -Refer to Exhibit 1-1. Suppose That Adam Has Three Hours

question 70

Multiple Choice

Exhibit 1-1

-Refer to Exhibit 1-1. Suppose that Adam has three hours to study for an exam in economics and another exam in sociology on the same day. The amount of time he spends studying economics and its relation to his grade in the two classes are shown in the table. The opportunity cost of increasing the time spent on studying economics from two hour to three hours is

• A)55 points on the sociology grade.
• B)40 points on the sociology grade.
• C)15 points on the sociology grade.
• D)10 points on the sociology grade.
• E)zero.

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Definitions:

Legally Binding Contract

A legally binding contract is an agreement between parties that is enforceable by law, meaning each party has legal obligations they must fulfill.

Mental Defect

A condition involving cognitive impairment or significant loss of intellectual functioning, which can impact legal responsibilities and rights.

Incapacity

Lacking the ability, power, or legal qualification to act, make decisions, or give consent.

Unenforceable Agreement

A contract or agreement that, due to certain defects or legal deficiencies, cannot be legally enforced or compelled by a court.