Assume That Labor Is the Only Factor of Production and That

question 2

Multiple Choice

Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in Japan are $10 per hour.Production costs would be lower in the United States as compared to Japan if

• A)U)S.labor productivity equaled 15 units per hour and Japan's 25 units per hour.
• B)U)S.labor productivity equaled 20 units per hour and Japan's 30 units per hour.
• C)U)S.labor productivity equaled 15 units per hour and Japan's 40 units per hour.
• D)U)S.labor productivity equaled 40 units per hour and Japan's 15 units per hour.
• E)U)S.labor productivity equaled 30 units per hour and Japan's 20 units per hour.

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Definitions:

Coefficient of Determination

A statistical measure that determines the proportion of variance in the dependent variable predictable from the independent variable(s).

Coefficient of Correlation

This is a statistical measure that calculates the strength and direction of the relationship between two continuous variables.

Pre-Employment Examination

An evaluation or test given to a job applicant before hiring to determine suitability for the position.

Linear Relationship

A type of relationship between two variables where changes in one variable are directly proportional to changes in another variable.