Which of the Following Statements Describes the Role of Automobiles

question 73

Multiple Choice

Which of the following statements describes the role of automobiles in the American economy of the 1920s?

• A) The auto industry played a major role in stimulating prosperity.
• B) The car industry bankrupted the railroads during the 1920s.
• C) Cars' affordability meant that most Americans could buy them.
• D) Cheap gasoline spurred Americans to migrate to the West.

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Definitions:

Marginal-Cost Curve

A graphical representation depicting how the cost of producing one additional unit of a good varies as the quantity produced changes.

Average-Total-Cost Curve

A curve that shows the average total cost of production at different levels of output, typically U-shaped due to economies and diseconomies of scale.

Average-Total-Cost Curve

A graphical representation showing how the average total cost of producing a good changes as the quantity produced changes.

Average-Fixed-Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.