Certain Industries of the U

question 97

Multiple Choice

Certain industries of the U.S. economy, such as farming and heavy equipment manufacturing, have experienced a significant decline in employment. Which of the following best explains this job loss?

• A) The cause is a decline in the productivity of labor in these industries.
• B) Workers lost these jobs because technological advances increased productivity.
• C) The U.S. economy cannot compete in these industries any longer.
• D) Government regulations have eliminated profit opportunities in these industries.

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Definitions:

Circular Flow

An economic model that depicts how money and goods flow through the economy in a continuous loop between households and firms.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses and costs incurred in operating the business.

Producing Units

Entities, either facilities or machinery, involved in the production process to manufacture goods or services.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic region or country.