Productivity

What is most likely to lead to an improvement in labour productivity in an industry?

• an increase in capital investment

• an increase in income tax rates

• an increase in the demand for the industry’s product

• an increase in the number of firms in the industry

What is a disadvantage to employers of switching to production using division of labour?

• average cost decreases

• flexibility of workers is lost

• repetition of tasks saves time

• training time decreases

What is an advantage to a country of having an efficient commercial banking system?

• It controls the money supply

• It discourages spending

• It encourages tax evasion

• It enables investment

Country X provides computers to help teachers in the classroom. How would this technology increase the economic potential of country X?

• It improves the quality of human resources.

• it reduces the amount of land required for education

• It removes the need for teachers

• It requires more teachers to do the same work.

What is the main difference between capital-intensive production and labour-intensive production?

• the market structure of the production process

• the output that the production process creates

• the resources on which the production relies

• the size of the firm that uses the production process

Which change will make a manufacturing company replace labour with capital to maintain the most efficient combination of factors of production?

• The price of machinery has increased.

• The productivity of labour has increased.

• The productivity of machinery has increased.

• The supply of labour has increased

Which change will make a manufacturing company replace machines with labour to maintain the most efficient combination of factors of production?

• The price of the product manufactured has increased

• The productivity of labour has increased.

• The productivity of machinery has increased.

• The wages of labour have increased.