Over Time,people Have Come to Rely More on Market-Produced Goods

question 17

Multiple Choice

Over time,people have come to rely more on market-produced goods and services and less on goods and services they produce for themselves.For example,busy people with high incomes,rather than cleaning their own houses,hire people to clean their houses.By itself,this change has

• A)caused measured GDP to fall.
• B)not caused any change in measured GDP.
• C)caused measured GDP to rise.
• D)probably changed measured GDP,but in an uncertain direction;the direction of the change depends on the difference in the quality of the cleaning that has resulted.

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Definitions:

Detrimental Reliance

A legal principle where a party suffers harm by relying on a misleading statement or promise of another.

Bargained-for Exchange

A fundamental principle of contract law that involves a mutual exchange of value or promises between parties.

Enforceable Promise

A commitment in a contract that is legally binding and can be upheld in court.

Substituted Contract

An agreement made to replace a prior contract, which was agreed upon by all original parties and extinguishes the obligations of the first agreement.