Figure 7-16 -In Figure 7-16, as We Move from a to B

question 159

Multiple Choice

Figure 7-16
-In Figure 7-16, as we move from A to B,

• A)the relative price of machines falls.
• B)total cost falls.
• C)output increases.
• D)labor becomes less productive relative to capital.

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Definitions:

Assignor

The person who assigns contract rights.

Obligor

The party in a contractual agreement who is bound to provide a payment or performance to the other party, known as the obligee.

Third Party Beneficiary

One for whose benefit a promise is made in a contract but who is not a party to the contract.

Contractual Duty

An obligation created by a contract that requires a party to act or refrain from acting in a certain way.