Which of the Following Would NOT Amount to Sufficient Consideration

question 40

Multiple Choice

Which of the following would NOT amount to sufficient consideration?

• A)A promise to give the creditor a book worth $100 in exchange for a full discharge from a debt of $200.
• B)A used postage stamp.
• C)A promise to give $100 to one party's daughter in exchange for a promise to provide services to the value of $300 to the other party.
• D)A promise to pay $100 in exchange for a promise to fully discharge the debtor from the obligation to pay the balance of the debt of $200 owing to the creditor.

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Definitions:

Economies of Scale

Advantages in terms of costs that companies realize by enlarging their scale of operations, with the unit cost of production generally falling as the scale increases.

Total Product

The overall quantity of output that a firm produces, usually within a given period of time, based on the input of resources.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, such as labor or capital.

Average Product

The output per unit of input, calculated by dividing total output by the total amount of input used.