How Did American Consumers Respond to the Economic Situation in the Early

question 34

Multiple Choice

How did American consumers respond to the economic situation in the early 1930s?

• A) Many increased their spending in hopes of stimulating the faltering economy.
• B) The drop in prices stimulated a major buying spree for middle-class spenders.
• C) Facing the possibility of hard times and unemployment,most Americans cut back.
• D) Falling production rates meant that few goods were available for Americans to purchase.

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Definitions:

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, multiplied by the standard labour rate.

Quality Raw Materials

High-standard, unprocessed or minimally processed inputs used in the production of goods, directly affecting the quality of the finished product.

Labour Time Standard

A benchmark or norm established for the amount of time required to perform a specific task or activity under normal working conditions.

Direct Material Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost.