Under State Law in Many States and Under the FTC

question 44

Multiple Choice

Under state law in many states and under the FTC rules and the Federal Consumer Credit Protection Act, a contract solicited in a consumer's home may be canceled within:

• A) 10 days by either party.
• B) 10 days by the consumer.
• C) three days by the consumer.
• D) 20 days by either party.

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Definitions:

Demand Curve

A diagram displaying how the cost of a product is connected to the consumer demand for it.

Cost Functions

A mathematical relationship expressing the cost of production as a function of the quantity of goods produced.

Brand Name

A name owned by a particular firm that distinguishes its products from those of other firms.

Economic Profit

The net gain of a company after deducting both its explicit and implicit expenditures from its aggregate revenue.