If Productivity Increased in a Factory After All of Its

question 6

Multiple Choice

If productivity increased in a factory after all of its employees were switched to a work schedule consisting of four 10-hour days, should management really credit the schedule switch with the improvement?

• A) Yes
• B) Yes, but only if no workers had left the factory
• C) No. There are too many threats to validity to draw that conclusion
• D) No. You would need to conduct a survey to be sure.

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Definitions:

Normative Economics

The part of economics involving value judgments about what the economy should be like; focused on which economic goals and policies should be implemented; policy economics.

Cheating On Agreements

The act of knowingly violating the terms of an agreement or contract, often to gain an unfair advantage or benefit.

Cartels

Formal agreements among competing firms to control prices or exclude entry of a new competitor in a market.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.