The Refusal of Courts During the Nineteenth Century to Interfere

question 86

Multiple Choice

The refusal of courts during the nineteenth century to interfere with the freedom of parties to enter into contracts can be traced, in part, to the writings of .

• A) Karl Marx
• B) Milton Friedman
• C) Adam Smith
• D) Thomas Paine

---

Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive in the market.

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences in a way that maximizes utility.

External Benefits

Advantages that result from a product or service's use that affect someone other than the direct consumer or producer, often justifying government intervention.

Consumption

The process by which goods and services are used by households and individuals, leading to a decrease in their availability.