[Zaltar Zeb] Zeb Suffers from Delusions That He Is from the Planet

question 37

Multiple Choice

[Zaltar Zeb] Zeb suffers from delusions that he is from the planet Zaltar. Zeb's contract with DigiTV, his digital television service provider, has expired. After comparing his past payments to the potential savings from satellite television provider SatTV, Zeb decides to sign a two-year contract with SatTV. After six months with SatTV, Zeb realizes he paid less with DigiTV and he now wants to be released from his contract with SatTV.
-According to Exhibit 16-4 regarding contracts that violate state or federal statutes, which of the following types of contracts would violate a statute in all states?

• A) An agreement regarding gambling.
• B) An agreement for an unlicensed attorney to perform legal work.
• C) An employment contract that requires employees to work on the Sabbath.
• D) An agreement regarding a usurious loan.
• E) An agreement to publish a defamatory article about one's boss.

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Definitions:

Efficiency Wage

A wage set above the market equilibrium to increase productivity by encouraging higher effort or reducing turnover among employees.

Positive Amount of Unemployment

A situation where there is a nonzero level of unemployment in the economy, often considered normal due to frictions and transitions in the job market.

Market-clearing Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded.

Market-clearing Wage

The wage rate at which the quantity of labor supplied is equal to the quantity of labor demanded.