Suppose That a College Physics Experiment Goes Horribly Wrong and Releases

question 43

Multiple Choice

Suppose that a college physics experiment goes horribly wrong and releases an electronic pulse that renders all electronic equipment in the city of San Francisco,California permanently useless.No people are hurt,and no buildings are damaged.After the accident,the wages earned by California workers will

• A) increase because the marginal productivities of workers will increase.
• B) decrease because the marginal productivities of workers will decrease.
• C) decrease because the marginal productivities of workers will increase.
• D) increase because the marginal productivities of workers will decrease.

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Definitions:

Consideration

Something of value (such as goods, services, money, or a promise) exchanged between parties in a contract.

Preexisting Contract

An agreement that was already in place before certain actions were taken or before a dispute arose.

Modification

The act of making changes or alterations to something, such as a document or agreement, often to improve it or make it more suitable.

Past Consideration

Refers to something given or an action that has been taken in the past, which cannot legally serve as a consideration for a present contract.