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:

Utility Function

A mathematical representation that ranks preferences over a set of goods and services, showing the level of satisfaction or utility a consumer receives.

Income

Revenue received, on a consistent basis, from occupational or investment sources.

Preferences

Preferences refer to an individual's subjective tastes or desires, ranking goods or outcomes in order of choice or desirability in decision making or consumption.

Utility Function

Describes how different combinations of goods or outcomes are valued by an individual, helping to predict choice under uncertainty.