Which of the Following Has the Greatest Influence on Creating

question 39

Multiple Choice

Which of the following has the greatest influence on creating the flexible relationship that exists between contract law and economic reality?

• A) Contractual obligations must be performed or compensation paid for non-performance.
• B) Courts assess the fairness of the contract terms chosen by the parties.
• C) A party's need for judicial assistance or judicial intervention must be justified.
• D) Parties must be responsible for themselves and work to maximize self-interest.

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Definitions:

Substitution Effect

The economic understanding that as prices rise or income decreases, consumers will replace more expensive items with cheaper alternatives.

Price of Capital

The cost of using capital assets, which can include interest rates on loans used to purchase the assets or opportunity costs of investing capital elsewhere.

Demand for Labor

The total amount of labor that employers want to hire at varying wage rates in a given time period.

Related Resource

Resources that are connected or relevant to one another in such a way that the presence, absence, or alteration of one can affect the other.