When a Customer Asks a Merchant to Deliver an Article

question 30

Multiple Choice

When a customer asks a merchant to deliver an article to his home with no mention of payment, the buyer implies that he or she will pay the market price of the article when it is delivered or when the bill is presented. This is an illustration of:

• A) a simple contract.
• B) consideration.
• C) an implied contract.
• D) a formal contract.

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Definitions:

Disposable Income

Net funds allocated to households for their spending and saving post the application of income taxes.

Consumption

Consumption is the act of using goods and services by households or individuals.

MPS

Marginal Propensity to Save, expressing the portion of additional income that a household saves rather than spends.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for. It is a key indicator of economic health and consumer spending.