An Implied Warranty of Merchantability Guarantees That

question 63

Multiple Choice

An implied warranty of merchantability guarantees that:

• A)the buyer must pay for all warranty repair costs.
• B)the manufacturer must cover all warranty repair costs.
• C)a toaster must toast bread.
• D)a used car must come with a radio.
• E)a new car must come with a MP3 player.

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Definitions:

Government Purchases

Government Purchases are expenditures on goods and services made by the government, which can influence the economy's aggregate demand.

Recessionary Gap

The difference between the actual output in an economy and the potential output it could achieve with full employment.

Foreign Exchange

The conversion or trading of one currency into another currency.

Federal Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues within a given fiscal year.