Which of the Following Correctly Describes the Purpose of Contract

question 43

Multiple Choice

Which of the following correctly describes the purpose of contract law?

• A) to ensure litigation of parties committing contractual breach
• B) to prescribe principles and values for use in society
• C) to determine right and wrong in the business world
• D) to enforce expectations and facilitate planning

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Definitions:

Tax Revenue

The earnings obtained by governments from tax collection.

Consumer Surplus

The contrast between what consumers intend to pay for an item or service and the real cost they bear.

Producer Surplus

The gap between the price producers are prepared to take for a product and the price they end up getting.

Pizza Tax

A hypothetical or symbolic tax imposed on unhealthy food products to discourage consumption and address public health concerns.