A(n)________ Occurs When a Party to a Contract Transfers Her

question 112

Multiple Choice

A(n) ________ occurs when a party to a contract transfers her duty to perform to a third party that is not part of the original contract.

• A)novation
• B)assignment
• C)delegation
• D)substantial performance
• E)agency

---

Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer receives from consuming an additional unit of a good or service.

Pareto Optimal

A state of allocation of resources in which it is impossible to make any individual better off without making at least one individual worse off.

Reallocation

The process of distributing or reallocating resources, tasks, or investments in a different manner with the aim to improve efficiency, returns, or outcomes.

Utility Increase

A rise in the level of satisfaction or benefit that a consumer derives from the consumption of goods or services.