Which of the Following Statements Is Consistent with How Changes

question 123

Multiple Choice

Which of the following statements is consistent with how changes in opportunity cost are expected to affect behavior?

• A)The lower the opportunity cost of doing X, the more likely X will be done.
• B)The lower the opportunity cost of doing X, the less likely X will be done.
• C)The higher the opportunity cost of doing X, the more likely X will be done.
• D)There is no relationship between opportunity cost and behavior.

---

Definitions:

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform under a contract.

Penalty Unenforceability

The legal concept that a penalty clause within a contract may not be enforceable if it is deemed excessively punitive rather than a genuine pre-estimate of loss.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to perform certain obligations of a contract.

Damages Determination

The process by which courts calculate the amount of money to be awarded to a party in a lawsuit for losses or injuries suffered.