To answer, refer to the following: "Ford built 18 vehicles per auto employee in North America last year, while GM could only manage 12." (The Wall Street Journal) In comparison with GM, Ford had a higher
A. average product of labor.
B. average product of capital.
C. marginal product of capital.
D. marginal product of labor.
Answer: A
You might also like to view...
Suppose capital and labor are perfect substitutes in a long-run production process. If labor costs $15 per hour and the rental rate of capital is $20 per hour, what can we say about the profit maximizing choice of labor and capital inputs?
A) We will only use labor in the production process B) We will only use capital in the production process C) We will use equal amounts of capital and labor D) The optimal capital-labor ratio is 0.75-to-1.
The production possibilities frontier illustrates
A. the fundamental fact of scarcity. B. the opportunity cost of acquiring more of one good. C. maximum output utilizing all resources efficiently. D. All of the responses are correct.
Which of the following is true of the crises witnessed by the southeast Asian countries in the 1990s?
a. The crises were sparked by the conversion from a fixed exchange rate regime to a flexible exchange rate regime. b. The crises occurred because among all countries, Malaysia owed the maximum short-term debt to foreigners. c. The consumption of petroleum products grew at an uncontrolled rate in Indonesia. d. Indonesia was the only country that owed a substantial long-term debt to the US. e. The stock prices dropped by 26 percent in Korea and by 57 percent in Malaysia.
Which of the following is a distinguishing feature of a command system?
A. Private ownership of all capital. B. Central planning. C. Heavy reliance on markets. D. Widespread dispersion of economic power.