Sally Has Just Purchased a Home and Wants to Have

question 8

Multiple Choice

Sally has just purchased a home and wants to have an in-ground pool installed.She calls Cool Pools,the company that put in her neighbors' pools.When the company rep comes to her property,he does some soil tests that are standard for the industry and gets the same results as he got when the other pools were put in,so the company gives her a price quote of $16,000.When Cool Pools begins excavating,it discovers solid rock four feet below ground level.The neighbors had no such rock.Cool Pools stops work and informs Sally that it will have to use explosives to remove the rock and the cost of the pool will now be $32,000.

• A) Sally is under contract and will have to pay the new price.
• B) Sally can have the contract discharged based on impracticability.
• C) Sally can have the contract discharged based on impossibility.
• D) Sally can have the contract discharged based on frustration of purpose.

Grasp the Five Fundamental Questions of economics within a market system.

Identify unique characteristics of a market system including private ownership and competition.

Understand the concept and significance of specialization in economic production.

Recognize the influence of consumer demand on market supply and employment.

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Definitions:

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Drive-Reduction Theory

A theory in psychology that explains motivation as being rooted in the desire to reduce internal tensions caused by unmet biological needs.

Cognitive Developmental Theory

A psychological theory that suggests how children acquire knowledge and understanding of the world around them, often associated with Jean Piaget.

Tension Motivates

The concept that a certain level of stress or tension can drive individuals to perform better or reach their goals.