Briefly explain why the same job in the United States that is done with robots may be done by hand in a rural African country.
What will be an ideal response?
Should accurately explain the different reasons behind using labor- intensive and capital-intensive production methods in the two different regions. In the United States, labor is very expensive and machines are plentiful, so most jobs are more economically done with technology. In a developing economy, such as a country in rural Africa, machines and technology are very scarce and expensive, but labor is cheap and abundant, so most jobs are done with labor instead of technology.
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Refer to the table above. If the market price of wine is $4/bottle, and the market demand for wine is 65 bottles, Sandra's demand for wine is:
A) 18 bottles. B) 40 bottles. C) 47 bottles. D) 111 bottles.
Refer to Scenario 12.3. What will be the price of this new drink in the long run if the industry is a Stackelberg duopoly?
A) $3 B) $9 C) $12 D) $13.50 E) none of the above
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna receives $70 from the auction, she can infer that
a. Both the bidders were high value bidders b. Both the bidders were low value bidders c. One of the bidders was high value, while the other was low value d. All of the above
An increase in demand for chocolate chips results in a(n)
a. higher equilibrium price and a lower equilibrium quantity b. lower equilibrium price and a lower equilibrium quantity c. lower equilibrium price and a higher equilibrium quantity d. higher equilibrium price and a higher equilibrium quantity e. increase in the supply of chocolate chips