As Methods of Economic Organization, the Market and the Public

question 106

Multiple Choice

As methods of economic organization, the market and the public sector are similar in which of the following ways?

• A) Income and power are distributed equally in both sectors.
• B) In both sectors, economic activity is undertaken only when it satisfies the criterion for economic efficiency.
• C) In both sectors, economic exchange is completely voluntary.
• D) Someone must cover the cost associated with the provision of scarce goods in both sectors.

Explain the conditions under which modifications to contracts require additional consideration under common law versus the UCC.

Discuss specific transactions that are enforceable without consideration (e.g., promissory estoppel, moral obligations).

Discriminate between enforceable promises and non-binding promises such as illusory promises and past consideration.

Understand the legal concepts related to substituted contracts and their effects on original agreements.

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Definitions:

Freedom Of Choice

The power or right to make one's own decisions without coercion or constraint.

Positive Freedom

The concept of freedom defined by the presence of capabilities and resources to fulfill one's own potential, emphasizing what individuals are free to do.

Determinism

The philosophical belief that all events, including moral choices, are completely determined by previously existing causes.

Predictability

The characteristic of a process, principle, or system that enables it to be known or declared in advance, especially through the application of scientific or logical techniques.