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:

Directly

In a straightforward or unmediated way, often referring to a direct cause and effect relationship or manner of communication.

Indirectly

In a way that is not directly evident or straightforward; involving an intermediary step or process.

Capital Stock

The total amount of physical goods or capital assets that are available for use in the production of goods and services.

Market Value

The present cost for purchasing or selling an asset or service in the market.