Trade Restrictions Result in All of the Following Except One

question 158

Multiple Choice

Trade restrictions result in all of the following except one. Which of the following is the exception?

• A) higher prices
• B) fewer choices
• C) improved quality
• D) misallocation of resources
• E) reduced competition

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party if the latter has relied on that promise to their detriment.

Consideration

In contract law, something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Illusory Promises

Commitments made in a contract that are vague or unenforceable because they do not bind the promisor to a specific action.

Mutuality of Benefit

The principle that both parties involved in a contract or agreement must stand to gain from the arrangement for it to be valid and enforceable.