Suppose European Incomes Increase Annually by 4 Percent Per Year,and

question 19

Multiple Choice

Suppose European incomes increase annually by 4 percent per year,and as a result,U.S.farm exports to Europe rise by 2 percent annually.The U.S.farm exports are

• A)Inferior goods.
• B)Normal goods.
• C)Price-elastic.

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Definitions:

Limited Liability

A legal principle where an investor's financial liability is limited to a fixed sum, mostly the value of an individual's investment in a company or partnership.

Sole Proprietor

A business owned and operated by a single individual, without a legal distinction between the owner and the business.

Separate Legal Entity

A business entity that is legally distinct from its owners, meaning it can own property, incur debts, and be sued in its own name.

Ratification

The action of formally confirming or approving an agreement, treaty, or contract, making it officially valid.