Consider the Indifference Curve Map and Budget Constraint for Two

question 135

Multiple Choice

Consider the indifference curve map and budget constraint for two goods, X and Y. Suppose the good on the horizontal axis, X, is normal. When the price of X increases, the substitution effect

• A) and income effect both cause an increase in the consumption of X.
• B) causes a decrease in the consumption of X, and the income effect causes an increase in the consumption of
• C) causes an increase in the consumption of X, and the income effect causes a decrease in the consumption of
• D) and income effect both cause a decrease in the consumption of X.

Understand enforceability conditions of oral promises in specific situations.

Comprehend the statute of frauds and its application to various agreements.

Recognize the importance of writing in making certain agreements enforceable.

Identify the requirements for electronic records and signatures under E-Sign and the Uniform Electronic Transactions Act.

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Definitions:

ERISA

The Employee Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Employee Retirement Income Security Act

A federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Acronym

A word formed from the initial letters of other words.

Implied Covenant

A legal concept that infers certain promises or conditions in a contract even though they are not expressly stated.