Which of the Following Transactions Falls OUTSIDE the Scope of the Sale

question 40

Multiple Choice

Which of the following transactions falls OUTSIDE the scope of the Sale of Goods Act?

• A)the exchange of a painting for a cheque
• B)a trade of a boat for a car
• C)the exchange of a diamond ring for a series of monthly cash payments
• D)the exchange of a new truck for $10 000 cash and an old car
• E)a cash purchase of crops that will be harvested

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Definitions:

Demand for Leisure

The desire for free time in which one can enjoy personal activities outside of work.

Labor Supply Curve

A graphical illustration of the relationship between the wage rate and the quantity of labor workers are willing to supply at various wage rates.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Income Effect

The change in consumers' purchasing power and consequently the quantity demanded of a good or service, prompted by a change in real income.