Refer to the Information Provided in Figure 16

question 52

Multiple Choice

Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1
-Refer to Figure 16.1. A movement from Point B to Point D represents

• A) an increase in capital stock.
• B) technological progress.
• C) economic decline.
• D) an increase in the labor force.

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Definitions:

Implied Contract

An agreement derived from the actions or circumstances of the parties involved, rather than explicit words.

Objective Theory Of Contracts

A theory under which the intent to form a contract will be judged by outward, objective facts as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions. Objective facts might include what a party said when entering into the contract, how a party acted or appeared, and the circumstances surrounding the transaction.

Express Contract

A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.

Express Contract

A legally-binding agreement in which the terms are explicitly stated by the parties involved either orally or in writing.