Which of the Following Factors Made It Difficult for Major

question 156

Multiple Choice

Which of the following factors made it difficult for major industries to hold the line against inflation in the 1970s?

• A) The quality of manufactured products increased, causing production costs to increase.
• B) Higher labor costs accompanied a decline in productivity.
• C) The supply of manufactured goods outstripped the demand for goods.
• D) Corporate tax rates tripled during the decade.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product.

Concave

A shape or curve that is curved inward, resembling the interior of a circle or sphere.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology constraints.

Marginal Rate Of Transformation

The rate at which one good must be sacrificed in order to produce an additional unit of another good, assuming efficient use of resources.