In Which of the Following Situations Would an Infant Be

question 39

Multiple Choice

In which of the following situations would an infant be bound by the contract he has entered into?

• A) A contract for the purchase of a bike with which to race.
• B) A government student loan.
• C) A contract for the purchase of a new leather jacket, where the merchant was not aware that he had several other jackets at home.
• D) A contract for the purchase of theatre tickets.
• E) A written contract for the purchase of a new stereo.

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Definitions:

Units

Standard quantities used to specify measurements and quantify the magnitude of physical quantities.

Perfect Competition

A market structure characterized by a large number of small firms, homogenous products, perfect information, and no barriers to entry or exit, leading to price-taking behavior.

Demand Curves

Graphical representations showing the relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase at different prices.

Marginal Revenue Curves

Graphical representations that show how marginal revenue varies as output level changes, used by firms to determine the most profitable level of production.