Luis Contractually Agreed to Sell a Widget to Monica for $20

question 29

Multiple Choice

Luis contractually agreed to sell a widget to Monica for $20 000.Monica accepted delivery of the widget, but has paid only $13 000.Although neither party realized it when they created their contract, the widget is actually worth $23 000.A court will order Monica to pay Luis

• A)$10 000.
• B)$7000.
• C)$20 000.
• D)$13 000.
• E)$23 000.

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Definitions:

Tennessee Valley Authority

A federally owned corporation in the United States created in 1933 to provide navigation, flood control, electricity generation, and economic development to the Tennessee Valley, a region particularly affected by the Great Depression.

Invisible Hand

A concept introduced by Adam Smith to describe the self-regulating nature of the market economy driven by individuals' pursuit of their own self-interest.

Government Involvement

The extent to which the government intervenes in the economy, which can range from regulation and tax policy to direct control or ownership of businesses.

Self-Interest

The driving force in economics that motivates individuals to pursue their own objectives and desires, often leading to economic activity and exchanges.