The United States Was Unable to Maintain Its Dominance in the Production

question 58

Multiple Choice

The United States was unable to maintain its dominance in the production of televisions because:

• A)the highly technical skills necessary to produce televisions are greater in other countries.
• B)the raw materials necessary to build televisions became scarce in the United States.
• C)the product designs evolved too rapidly for engineers in the United States to keep up.
• D)automated techniques allowed production to be outsourced to countries with less-skilled workers.

---

Definitions:

Variable Cost

Expenses that change in proportion to the activity or production level of a business; for example, costs for raw materials that increase as more goods are produced.

Rent

A payment made periodically by a tenant to a landlord in exchange for the use of land, a building, or another property.

Fixed Costs

Costs that do not change with the level of output in the short term, such as rent, salaries, and insurance.

Variable Costs

Costs that vary directly with the level of production, such as materials and labor.