Under the American System, the Use of ____ Helped Reduce

question 96

Multiple Choice

Under the American system, the use of ____ helped reduce costs and increase production.

• A)child labor
• B)interchangeable parts
• C)synthetic materials
• D)slave labor
• E)wage and price controls

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced within a certain period.

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor.

Cost of Capital

The rate of return that a company must earn on its project investments to maintain its market value and attract funds.

Cutoff Rate

A specific point or standard used for decision-making, often concerning the minimum accepted return on investment.