Suppose You Are Thinking About Spending an Additional Hour Studying

question 63

Multiple Choice

Suppose you are thinking about spending an additional hour studying for your next microeconomics exam.You should spend that extra hour studying as long as

• A) The extra study time leads to a higher grade on the exam
• B) Your only other alternative is spending an hour reading a novel
• C) The benefit of an additional hour of study is greater than what you have to give up in order to study one more hour
• D) You enjoy studying microeconomics

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Definitions:

Promissory Estoppel

A legal principle that prevents a promisor from arguing that an underlying promise offered should not be legally upheld if the promisee has relied on that promise to their detriment.

Unilateral Contract

A type of contract in which only one party makes a promise to perform in exchange for an act by the other party.

Promissory Estoppel

A legal principle that prevents a party from retracting a promise when the other party has reasonably relied on that promise to their detriment.

Consideration

Something of value that is promised, given, or received in a contract to make it legally binding.