During the 1920s

question 129

Multiple Choice

During the 1920s:

• A) an estimated 40 percent of the population remained in poverty.
• B) real wages rose faster than corporate profits.
• C) wealth became more evenly distributed.
• D) small auto companies flourished.
• E) New England experienced an individual revival.

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Definitions:

Marginal Product

The increase in output that results from adding one more unit of a specific input, while keeping other inputs constant.

Substitutability

The degree to which one good can be replaced by another in consumption or production without affecting consumer satisfaction or output.

Price Elasticity of Demand

A gauge of demand elasticity in reaction to price adjustments for a particular commodity.