During the Decade of the 1920s,the U.S.economy

question 27

Multiple Choice

During the decade of the 1920s,the U.S.economy

• A) was generally healthy and gave no indication of the troubles that lay ahead regarding ?the Great Depression.
• B) was relatively stagnant in terms of growth of total output with small declines in agriculture ?and housing, which suggested that difficult times might lie ahead in the 1930s.
• C) experienced actual declines in overall production levels, including agriculture and housing, which suggested that even more difficult times probably lay ahead.
• D) experienced relatively rapid growth in overall output but in the late 1920s nevertheless ?showed weaknesses in certain sectors such as agriculture, housing and the financial ?sector, which suggested the possibility of difficult times ahead.

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Definitions:

Revenue and Spending Variance

The difference between the expected (budgeted) and actual amounts of revenue and expenses.

Flexible Budget Performance Report

A financial report that compares actual operating results to budgeted amounts adjusted for actual activity levels.

Activity Variance

The difference between the planned budget of an activity and the actual expenses incurred.

Net Operating Income

The earnings derived from the primary activities of a business before the subtraction of any taxes and interest charges.