Which of the Following Contributes to the High Productivity of American

question 16

Multiple Choice

Which of the following contributes to the high productivity of American workers?

• A)The labor-intensive production process in the United States.
• B)The abundance of capital relative to labor.
• C)The low level of factor mobility.
• D)The decreasing investment in human capital.

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Definitions:

Contribution Margin

The selling price per unit, minus the variable cost per unit, used to determine the profitability of products or services.

Fixed Costs

Business expenses that remain constant regardless of the level of goods or services produced.

Fixed Costs

Costs that do not change with the level of production or sales over a certain period, such as rent or salaries.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.