When Are Promises Based on Past Consideration Enforceable

question 64

Multiple Choice

When are promises based on past consideration enforceable?

• A) Never
• B) When enforcement is necessary to avoid injustice
• C) When an illusory promise is made
• D) When a sale of goods is involved
• E) Always

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Definitions:

Tax Per Unit

A tax that is levied on a product based on the amount of the product sold, not on its value.

Consumer Surplus

The incongruity between what consumers are willing to expend on a good or service and what they truly expend.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual amount they receive.

Opportunity Cost

Opportunity cost represents the value of the best alternative that must be forgone as a result of choosing another option.