Marx Predicted That as Production Expands in Capitalist Economies

question 31

Multiple Choice

Marx predicted that as production expands in capitalist economies:

• A) profits will decline and wages will fall, leading to revolution.
• B) wages will increase and profits will decline, leading to bankruptcy.
• C) profits and wages will both increase, leading to inflation.
• D) profits and wages will become irrelevant, as a decent standard of living for all is attained.
• E) as profits increase, wages will be increased to produce better goods.

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Definitions:

Null Hypothesis

A statement in statistical analysis that proposes there is no significant effect or difference between certain variables or groups.

Statistical Test

A method of making decisions or inferences about population parameters based on sample data, often involving a comparison between an observed test statistic and a critical value.

Power

The probability that a statistical test will correctly reject a false null hypothesis; it measures a test's sensitivity to detect an effect if there is one.

Null Hypothesis

A hypothesis that proposes there is no significant difference or effect, and any observed difference is due to sampling or experimental error.