Which of the Following Statements Is True of Contracts

question 24

Multiple Choice

Which of the following statements is true of contracts?

• A) Parties to an informal contract can use any words they choose to express their contract.
• B) A contract under seal is disclosed only to the offeror of the contract.
• C) A letter of credit is an informal contract.
• D) A void contract is the same as a voidable contract.

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Definitions:

Law of Diminishing Returns

An economic principle stating that if one factor of production is increased while others are held constant, the overall returns will eventually decrease after a certain point.

Resource Demand Curve

A graph that illustrates the quantity of a resource demanded at various price levels.

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity can affect the market price significantly.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, factor, or input.