Consider a Small Economy with 3 Individuals Where Each Individual

question 110

Multiple Choice

Consider a small economy with 3 individuals where each individual produces and sells $1000 worth of final goods and services.The national income for this economy is

• A)$3000.
• B)less than $3000 if some of the income is saved.
• C)more than $3000 if some of the income is invested.
• D)less than $3000 if there are taxes in this economy.
• E)more than $3000 if the individuals are earning profits.

---

Definitions:

Consideration

The worth, including currency, services, or items, that is traded between entities in an agreement.

Contract Void

A contract void is a contract that is deemed legally nonexistent and unenforceable from the outset, due to illegality or other serious defects.

Undue Influence

Undue influence is a legal concept where an individual is able to persuade another's decisions due to the relationship between the two, often leading to an unfair advantage.

Misrepresentation

A false statement of fact made by one party to another, which induces that other party to enter into a contract.