An Agreement in Which Performance by One Party Depends Upon

question 20

Multiple Choice

An agreement in which performance by one party depends upon the occurrence of an uncertain event in the hope of gaining something of value is termed:

• A) a speculative agreement.
• B) a gambling agreement.
• C) an uncertain agreement.
• D) an agreement of chance.

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Definitions:

Efficient

Achieving maximum productivity with minimum wasted effort or expense; in economics, an allocation of resources in which it is impossible to make any one individual better off without making someone else worse off.

Inefficient

Refers to a situation where resources are not used in the most effective way, leading to waste or suboptimal outcomes.

Efficient Production

The process of producing goods or services in a way that minimizes waste and maximizes the use of resources.

Circular-flow Diagram

An economic diagram that traces the path of monetary transactions between markets, involving both households and business entities.