An Important Factor in the Decline of the U

question 169

Multiple Choice

An important factor in the decline of the U.S. textile industry over the past 100 or so years is

• A)foreign competitors that can produce quality textile goods at low cost.
• B)lower prices of goods that are substitutes for clothing.
• C)a decrease in Americans' demand for clothing, due to increased incomes and the fact that clothing is an inferior good.
• D)the fact that the minimum wage in the U.S. has failed to keep pace with the cost of living.

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Definitions:

Novation

The act of replacing an obligation to perform with a new obligation, or substituting a new party into an existing contract.

Successive Assignments

The process of transferring rights or duties from one party to another over a series of transactions.

Obligor

The party in a contractual agreement who is bound or obligated to perform a duty or payment to the obligee.

Assignee

A person or entity to whom rights or interests have been transferred by another, usually under the terms of a contract.