The Term ________ Refers to a Type of Sale in Which

question 41

Multiple Choice

The term ________ refers to a type of sale in which there is no actual sale unless and until the buyer accepts the goods.

• A) consignment
• B) sale or return contract
• C) sale on approval
• D) option contract

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Definitions:

Consumer Surplus

The discrepancy between the sum consumers are ready and able to spend on a good or service and the sum they end up paying.

Consumer Surplus

The distinction between the expected total consumer spending on a product or service and the real total paid.

Trade

The exchange of goods, services, or both between two parties, whether within the interior of a country or across international borders.

Comparative Advantage

The economic principle that a country should specialize in producing and exporting goods in which it has a lower opportunity cost than other countries.