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11 true or false 7 points true or false: in the end shelling companies choose to lay off 10,000 employees and use mechanization because it was a cheaper cost. true false 12 multiple choice 7 points what was one important factor that contributed to the great depression according to the passage? the large number of consumers burdened with debt. the overproduction of goods in the united states the hot stock market in the united states the crushing reparations and war debt imposed by the treaty of versailles
Question 11 (True or False)
To determine the answer, we analyze the statement. In business (specifically in the context of cost - benefit analysis for companies), mechanization often reduces labor costs. If shelling companies find that mechanization is cheaper than employing 10,000 workers, it is rational for them to lay off workers and adopt mechanization. So the statement is likely to be true.
- Analyze Option A: A large number of consumers burdened with debt means they have less money to spend on goods and services. While this was a factor in the Great Depression, let's check other options.
- Analyze Option B: Overproduction of goods in the US was a major factor. When businesses produced more goods than consumers could buy (due to various reasons like stagnant wages, debt - burdened consumers), it led to a surplus, falling prices, business failures, and ultimately contributed to the Great Depression.
- Analyze Option C: A "hot" stock market (speculative bubble) was part of the lead - up, but the crash of the stock market was a trigger, not the main underlying factor of overproduction and under - consumption that drove the Great Depression.
- Analyze Option D: The Treaty of Versailles' reparations mainly affected Europe (especially Germany) and was not a primary factor for the US - centered Great Depression that spread globally.
Among these, overproduction of goods in the US is a well - known key factor contributing to the Great Depression.
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