Intoxicated but Fully Aware of the Consequences,Uri Agrees to a Two-Year

question 5

Multiple Choice

Intoxicated but fully aware of the consequences,Uri agrees to a two-year cell-phone service contract with Wander Talk,Inc.,at more than the average market price.This contract is

• A)enforceable.
• B)not enforceable because contracting parties can change their minds.
• C)not enforceable because the contract clearly favors Wander Talk.
• D)not enforceable because Uri was intoxicated when he agreed to it.

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Definitions:

Economics

The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.

Scarce Resources

Resources that are limited in supply and cannot meet all the wants and needs of a society.

Trade-offs

Decisions that involve sacrificing one goal or benefit in order to gain another, often used in the context of economic and financial planning.

Free Lunch

An expression that suggests there is no such thing as a benefit without a corresponding cost, even if the cost is not immediately apparent.