Richard Arkwright Became Interested in Creating a Spinning Machine Because

question 14

Multiple Choice

Richard Arkwright became interested in creating a spinning machine because

• A) the cotton industry was booming
• B) he was an inventor by trade
• C) the cotton industry needed a boost
• D) he came from a wealthy family

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Definitions:

Substitution Effect

The adjustment in purchasing behaviors as a result of variations in the comparative costs of products, prompting buyers to switch from one item to another that is either cheaper or more costly.

Output Effect

The impact on economic output and productivity resulting from a change in the level of economic activity.

Wage Rate

The amount of money paid to workers per unit of time, often hourly or monthly, for their labor.

MRP

Marginal Revenue Product, the additional revenue generated from using one more unit of a factor of production.