Which of the Following Would NOT Lead to a Decrease

question 54

Multiple Choice

Which of the following would NOT lead to a decrease in the price of domestic automobiles?

• A) an increase in the price of foreign-made automobiles
• B) an economic recession, which decreases consumer income
• C) a decrease in the wages paid to union auto workers
• D) an increase in the number of domestic automakers

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Definitions:

Lost Production

The output that could have been produced but was not due to inefficiencies, disruptions, or unused capacity.

Unemployment Rate

The portion of individuals in the labor force who are unemployed and actively hunting for jobs.

Unemployed Persons

Individuals actively seeking employment but unable to find work.

Inflation

A general increase in prices and fall in the purchasing value of money over a period of time.