Suppose That an Economy Produces 2,400 Units of Output, Employing

question 98

Multiple Choice

Suppose that an economy produces 2,400 units of output, employing the 60 units of input, and the price of the input is $30 per unit. All else equal, if the price of each unit of input decreased from $30
To $20, then productivity would

• A) increase from $40 to $90 and aggregate supply would decrease.
• B) increase from $50 to $60 and aggregate supply would decrease.
• C) increase from $60 to $70 and aggregate supply would increase.
• D) remain unchanged but aggregate supply would increase.

Understand the application of the plain meaning rule in contract disputes.

Comprehend the classification of contracts in terms of formation, performance, and enforceability.

Understand the significance of specific contract clauses, such as letter-of-credit agreements, in business transactions.

Identify the elements of the marketing mix and understand their significance.

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Definitions:

Full Performance

The complete execution of all terms and obligations specified in a contract or agreement.

Obligation

A duty or commitment one party has to perform or refrain from performing specified actions as per a contract or legal requirement.

Novation

The act of replacing an existing obligation with a new one, transferring rights and duties from the original party to a new party.

Substitute

A replacement or alternative for someone or something.