RFBT QUIZZES

• When analysing markets, a range of assumptions are made about the rationality of economic agents involved in the transactions
• The Wealth of Nations was written

  1776
• Rational


  (in classical economic theory) economic agents are able to consider the outcome of their choices and recognise the net benefits of each one
• Consumers act rationally by


  Maximising their utility
• Producers act rationally by


  Selling goods/services in a way that maximises their profits
• Workers act rationally by


  Balancing welfare at work with consideration of both pay and benefits
• Governments act rationally by


  Placing the interests of the people they serve first in order to maximise their welfare
• Rationality in classical economic theory is a flawed assumption as people usually don't act rationally
• A firm increases advertising

  Demand curve shifts right
• Demand curve shifting right

  Increases the equilibrium price and quantity
• Marginal utility


  The additional utility (satisfaction) gained from the consumption of an additional product
• If you add up marginal utility for each unit you get total utility
• Statements concerning delay


  • I. There is no delay in obligations not to do
  • II. As a rule, the debtor will be in default if he does not perform his obligation on due date
• They include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation and similar injury
• Compensatory damages


  Damages to compensate for the injury suffered
• Corrective damages


  Damages to correct the wrong done
• Exemplary damages


  Damages to punish the wrongdoer
• Moral damages


  Damages for injury to feelings, reputation, etc.
• Cara is obliged to deliver 5 sacks of "Jasmine" rice to Ashley after two weeks. On due date, Cara intentionally delivered 5 sacks of rice of a lower class
• Subrogation


  The right of a person who has paid a debt to stand in the place of the creditor and avail of all the remedies which the creditor could have used against the debtor
• Subrogation


  The amount the subrogee can recover is the lower of: the amount he has paid or the payment that has benefited the debtor
• Severus is indebted to Albus with Harry as guarantor. Albus assigns the credit to Lily, who in turn assigns the credit to Harry.
• Which is correct?

  • Harry becomes the new creditor of Severus
  • The assignment by Albus to Lily extinguished the guaranty
  • The obligation of Severus is extinguished
  • The assignment to Harry did not affect the obligations of Harry as guarantor
• Boni obtained from Marceline a loan for P1,500 with interest at 10% per annum, the payment of which loan was secured by a guaranty secured by Simon. After the maturity of the loan, Gunther a friend of Boni, went to Marceline and paid the latter, without the knowledge of Boni, P1,400 for said loan and thereupon Marceline signed and delivered to Gunther a receipt of this tenor "Received from Gunther P1,400 in full payment of Boni's obligation in my favor. Sgd. Marceline".
• Which is correct?


  • Gunther may recover from Boni P1,500 plus interest
  • Gunther may recover from Boni P1,400 plus interest
  • Gunther may recover from Boni P1,400 without interest
  • Gunther may cover from Boni the amount of obligation, that is P1,500, because Boni was benefited up to P1,500.
• Using the preceding number in case Boni has nothing with which to pay. Gunther may exact from the guarantor.

  • P1,500
  • P1,400
  • Nothing
  • P1,400 plus interest
• If one debt is P12,000 and the other is P6,000 and the debtor without making any application payment gives P3,000, how should said payment be applied, presuming that both debts are of the same nature and burden?

  • The payment will be applied equally
  • The payment will be applied proportionately
  • The payment will be applied to the P12,000 debt
  • The payment will be applied to the P6,000 debt
• Suspensive condition


  A condition precedent
• Resolutory condition


  Also known as condition subsequent
• CHARLOTTE owes OSCAR P56,800 payable as soon as CHARLOTTE has the money to pay OSCAR. This is
• Types of solidarity on the part of the obligees

  • Active solidarity
  • Passive solidarity
  • Mixed solidarity
  • Casual solidarity
• The following are obligations will a period, except:

  • As soon as I have money
  • In partial payments
  • As soon as possible
  • Until the defendant shall have obtained a loan from the bank
• NAIROBI, HELSINKI and DENVER borrowed P120,000 from ANGEL and MARITES and signed a promissory note dated JANUARY 7,2018, and due within SEVEN months. How much can ANGEL collect from HELSINKI (debtors are solidary while creditors are joint).
• RINLEY obliged herself to give JOHN an overseas travel free of expense if JOHN places among the top ten in the CPA Board Exam. Subsequently, they agreed that RINLEY will give JOHN an overseas travel free of expense if JOHN merely passes the CPA Board.
• This is example of

  • Mixed novation
  • Real novation
  • Implied novation
  • Personal novation
• Demandable


  The obligation is demandable on the date of the obligation and shall continue to be in force up to the arrival of the day certain
• ALVIN owes CARL P20,000 due on May 27, 2019. ALVIN owes BERNA P16,000 due on MARCH 26, 2019. ALVIN obliged himself to deliver to CARL a SACK OF RICE valued at P12,000 on MARCH 30, 2019. On MARCH 31, 2019, ALVIN paid CARL P20,000. If ALVIN makes an application of payment:
• Which is correct?


  • The P20,000 should be applied to the first debt only
  • The P20,000 should be applied to the second debt only
  • The P20,000 may be applied either to the first debt or to the second debt
  • The P20,000 may be applied to the first debt, or to the second debt or to the third debt
• MIA, RIANNE and HENRY are jointly liable to PAUL in the amount of P15,000. PAUL assigns the entire credit to MIA. In this case
• Which is correct?


  • RIANNE and HENRY will not be liable to MIA
  • The obligation is extinguished because of confusion
  • MIA Share in the obligation is extinguished because of confusion
  • MIA becomes the new creditor and may demand from RIANNE and HENRY P7,500 each