Between 1870-1910, Quantitative Evidence Shows Very Little, If Any Growth

question 27

Multiple Choice

Between 1870-1910, quantitative evidence shows very little, if any growth in bushels produced per acre for crops like corn and wheat. Which of the following statements correctly depicts the situation of farmers during this period?

• A) Although output per acre was not growing, increased labor productivity allowed farmers to earn profits.
• B) Farmers exited corn and wheat production due to lack of profits in these crops.
• C) Because output per acre was not growing, farmers were forced to produce corn and wheat on farms of 60 acres or less.
• D) Corn and wheat production became concentrated in the Great Lakes region, where small farms were common after the Civil War.

---

Definitions:

Standard Machine-Hours

A predetermined amount of time that should be required to complete a task or produce a product on a machine, used for planning and efficiency analyses.

Variable Overhead Efficiency Variance

The difference between the actual hours taken to produce something and the standard hours expected, multiplied by the variable overhead rate per hour.

Manufacturing Overhead

All indirect costs associated with manufacturing a product, excluding direct materials and direct labor costs.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) cost based on the actual level of activity.