Which of the Following Is True Regarding the Preexisting Duty

question 8

Multiple Choice

Which of the following is true regarding the preexisting duty rule?

• A) Unforeseen circumstances is an exception, but additional work and past consideration are not exceptions.
• B) Additional work is an exception, but unforeseen circumstances and past consideration are not exceptions.
• C) Past consideration is an exception, but unforeseen circumstances and additional work are not exceptions.
• D) Unforeseen circumstances and additional work are exceptions, but past consideration is not an exception.
• E) Unforeseen circumstances and past consideration are exceptions, but additional work is not an exception.

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods and services that a society can produce with existing resources and technology, underlining the concept of opportunity cost.

Consumer Goods

Goods produced for direct consumption by the end customer, as opposed to goods used in the production of other goods.

Capital Goods

Physical assets that are used in the production of other goods and services and have a life expectancy of more than one year.

Production Possibilities Curve

A graphical representation that shows the maximum number of goods or services that can be produced efficiently with limited resources.