For the Following Question(s), Suppose That an Economy Produces Only

question 23

Multiple Choice

For the following question(s) , suppose that an economy produces only food and clothing, and that price and quantity data
are given in the table below.
-Year 1 nominal GDP is

• A)$270.
• B)$310.
• C)$390.
• D)$450.
• E)$200.

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Definitions:

Inadequate Consideration

When the value exchanged in a contract is disproportionately small, calling into question the validity of the agreement.

Contract

A legally binding agreement between two or more parties that is enforceable by law, outlining obligations and rights of the parties involved.

Illusory Contract

A supposed agreement that lacks the necessary elements of a binding contract, giving the illusion of a mutual contract without any enforceable commitment.

Consideration Requirement

The consideration requirement is a fundamental principle of contract law that mandates a contract must involve an exchange of value between the parties for it to be legally binding.