The Principal Must

question 45

Multiple Choice

The principal must:

• A) perform the contract according to its terms.
• B) compensate the agent for services.
• C) indemnify the agent for loss in some circumstances.
• D) all of the above.

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Definitions:

Aggregate Inflation

Aggregate inflation refers to the overall general increase in prices across the economy, reducing the purchasing power of money.

Unemployment

The failure to use all available economic resources to produce desired goods and services; the failure of the economy to fully employ its labor force.

Command Economies

Economic systems where the government controls the production, distribution, and consumption of goods and services.

Positive Statement

An objective statement based on fact that can be tested and validated, often used in the description of economic behaviors.