Which of the Following Agents Would Not Have Authority to Contract

question 46

Multiple Choice

Which of the following agents would not have authority to contract with third parties on behalf of the principal?

• A) A salesman who sells his employer's goods.
• B) A manager who hires employees for the store owner.
• C) A factory worker hired to operate a machine.
• D) A buyer who regularly buys merchandise for a store.
• E) All agents have authority to contract with third parties on behalf of their principals.

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Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved.

Tax

A financial charge or levy imposed by a government or other authority to fund public expenditures.

Tax Burden

The measurement of how much of a tax's economic weight falls on an individual or economic entity, including both the direct and indirect effects.

Consumers

Individuals or groups who use goods and services generated within the economy, contributing to demand.