Increases in the Natural Level of Output Allow the Economy

question 29

Multiple Choice

Increases in the natural level of output allow the economy to produce _____ goods and services and make people want to buy _____ goods and services.

• A) fewer; fewer
• B) fewer; more
• C) more; more
• D) more; fewer

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Definitions:

Corporation

A legal entity separate from its owners, providing them with limited liability, and which can own property, enter contracts, and sue or be sued.

Contract Law

The branch of law that deals with the creation, enforcement, and termination of contracts between parties.

Sole Proprietor

An individual who owns and operates a business by themselves, bearing full responsibility for its debts and legal actions.

Limited Liability

A legal structure where a person's financial responsibility for a company's debts and obligations is restricted to a fixed amount, typically their investment.