The Increased Use of Automation and Less Use of the Work

question 144

Multiple Choice

The increased use of automation and less use of the work force in companies has caused a trend towards an increase in

• A) both variable and fixed costs.
• B) fixed costs and a decrease in variable costs.
• C) variable costs and a decrease in fixed costs.
• D) variable costs and no change in fixed costs.

Understand the concepts of positive and normative statements in economics.

Differentiate between statements of fact (positive statements) and statements of opinion or policy (normative statements).

Apply understanding of economic models to interpret real-world economic activities and policies.

Evaluate the role of government and policy implications in economic statements.

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Definitions:

Binding Price Ceiling

A maximum legal price set below the equilibrium price, leading to shortages as demand exceeds supply.

Equilibrium Level

A situation where the balance between the market's supply and demand stabilizes prices.

Increase Efficiency

The process of improving the effectiveness of an operation, system, or process by maximizing output with the minimal amount of input or effort.

Super Bowl

The annual championship game of the National Football League (NFL) in the United States, known for its significant viewership and elaborate halftime shows.