It Took Exactly 10 Hours to Produce the First Widget

question 14

Multiple Choice

It took exactly 10 hours to produce the first widget on a 100 percent learning curve.The second widget will take how many hours to produce?

• A)8.0 hours
• B)10.0 hours
• C)12.0 hours
• D)A 100 percent learning curve cannot exist.
• E)2 hours

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Definitions:

Aggregate Quantity

The total amount or sum of goods and services produced or supplied in an economy at a given overall price level during a specific time period.

Aggregate Demand

The total demand for all goods and services within an economy at different price levels, during a specified time period.

Investment Spending

The expenditure on capital goods including buildings, machinery, and equipment, which are used to produce goods and services in the future.

Aggregate Supply Curve

A graph that shows the relationship between the overall price level in the economy and the total output (GDP) that firms produce and sell, at all possible price levels.