Which of the Following Issues Persisted in Most States as Capitalism

question 15

Multiple Choice

Which of the following issues persisted in most states as capitalism became more entrenched across Europe?

• A) A great divide between the rich and poor that spurred uprisings among the poor
• B) An inability for merchant classes to gain a foothold while royal families held all the power
• C) A massive exodus from urban centers as peasants sought to acquire land to make their own wealth

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Definitions:

Decreasing-Cost Industry

An industry where the average cost of production decreases as the industry grows and output increases, often due to economies of scale.

Demand Occurs

The moment at which consumers are willing and able to purchase a good or service at a given price.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms in the industry are earning only normal profits, with no incentive for entry or exit.

Inferior Good

A good or service whose consumption declines as income rises, prices held constant.