When a Promisor Appoints Another Person to Perform His Duties

question 4

Multiple Choice

When a promisor appoints another person to perform his duties under a contract, _____.

• A) it is called an assignment
• B) it is called a delegation
• C) it creates an incidental beneficiary
• D) it creates a donee beneficiary

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Definitions:

Disposable Income

The amount of money left for spending and saving after income taxes have been deducted.

Autonomous Consumption

The level of consumption that does not change with fluctuation in income; it is the consumption level when income is zero.

Consumption

The use of goods and services by households, representing one of the primary components of gross domestic product (GDP).

Disposable Income

The aggregate financial resource for households to allocate towards spending and saving after mitigating income taxes.