Figure 30-6 -Refer to Figure 30-6. Which of the Following Would Cause

question 254

Multiple Choice

Figure 30-6
-Refer to Figure 30-6. Which of the following would cause the change depicted in the figure above?

• A) An increase in investment in infrastructure causes U.S. productivity to rise relative to Mexican productivity.
• B) A declining preference for Kentucky bourbon causes Mexican consumers to decrease their preferences for U.S.-produced alcohol relative to Mexican-produced alcohol.
• C) Dumping accusations result in the United States placing tariffs on produce imported from Mexico.
• D) A contractionary monetary policy causes a decrease in the price level of U.S. goods relative to Mexican goods.

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Definitions:

Contract

A legal agreement between two or more parties that creates obligations which are enforceable or recognized by law.

Mistake of Fact

A misunderstanding by one or more parties to a contract about a material fact that is essential to the agreement, which can sometimes render the contract voidable.

Rescission

The act of revoking, canceling, or annulling a contract, returning all parties to their statuses prior to the contract's formation.

Mistake of Law

An error made by a person in understanding the law as it pertains to their actions, which generally is not considered a defense in criminal law.