Carrie and Peter Enter into a Contract in Which Carrie

question 57

Multiple Choice

Carrie and Peter enter into a contract in which Carrie agrees to wash Peter's car as long as Peter tutors Carrie's son in math during the entire time Carrie is washing the car. This is an example of which type of conditional contract?

• A) Condition precedent
• B) Condition subsequent
• C) Condition concurrent
• D) Implied condition
• E) The contract is not conditional.

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Definitions:

Disposable Income

The disposable capital for households' spending and saving endeavors after income taxes.

Consumption

The process of purchasing goods and services to fulfill the needs and wants of individuals.

Average Propensity

The ratio of total consumption to total income, indicating how much income is spent rather than saved.

Save

Setting aside money or other resources for future use or in case of emergencies.