How Did Most Farmers Respond to Falling Crop Prices at the End

question 80

Multiple Choice

How did most farmers respond to falling crop prices at the end of the nineteenth century?

• A) They voluntarily grew fewer crops to decrease the supply and raise the value of the crops that they did sell.
• B) They grew still more crops in order to make ends meet, tragically lowering the price of crops even more by increasing the supply.
• C) They petitioned the government to buy up surplus crops to ensure that demand remained proportional to the supply.
• D) They petitioned Congress to raise tariffs on imports from abroad to reduce international competition.
• E) They hired immigrant laborers who would work for little money to harvest their crops and reduce their overhead.

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Definitions:

Conversion Costs

Conversion costs are the costs required to convert raw materials into finished products, including labor and overhead.

Factory Overhead

Expenses related to the operation of a manufacturing plant that are not directly tied to a specific product, including utilities, depreciation, and facility maintenance.

Direct Labor

Costs attributed to the work performed by employees who directly contribute to the manufacturing or production of goods, such as wages of assembly line workers.

Process Costing System

An accounting methodology used to allocate production costs to products based on the process they go through.