The Economic Problem Stems from the Fact That

question 2

Multiple Choice

The economic problem stems from the fact that:

• A)the production possibilities curve bows out to the right
• B)resources are scarce relative to people's demand for goods and services
• C)people act to maximize their own welfare
• D)historically the production possibilities curve has been shifting down toward the origin
• E)the production possibilities curve bows in to the left

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Definitions:

Exculpatory Clause

A clause in a contract that basically frees one party (usually the drafter of the agreement) from all liability arising out of performance of the contract; generally based on factors such as consumer ignorance or a great deal of unexplained fine print that serve to deprive the less powerful party of a meaningful choice.

Liability Release

a legal document where one party agrees not to hold another party liable for risk, damage, or loss.

Green Hair

A hair color that has been dyed various shades of green or hair that has turned green due to exposure to chlorine or certain chemicals.

Legal Capacity

The ability of a person to understand the nature and effects of their actions under the law, thus being able to enter into a binding contract.