Juan Perón's Return in 1974 Brought a New Economic Policy

question 45

Multiple Choice

Juan Perón's return in 1974 brought a new economic policy called the Social Contract that called for

• A) higher wages for workers.
• B) a wage and price freeze.
• C) an end to foreign ownership of Argentine industry.
• D) a professionalization of the military.

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Definitions:

Productivity

The measure of the efficiency of production, often defined as the ratio of output to inputs in the production process.

Constant Returns To Scale

A situation in production where an increase in the input of resources leads to a proportionate increase in output, resulting in no change in average costs.

Production Function

The relationship between the quantity of inputs used to make a good and the quantity of output of that good.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or services.