Free Production Zones Are

question 16

Multiple Choice

Free production zones are:

• A) regions within highly developed countries where the costs of production are so low that labor is practically free
• B) geographical areas in Third World countries devoted to special economic activities that involve few restrictions on the use of labor and where labor is extremely cheap
• C) production zones in state socialist societies where goods are produced that are given away to the public

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Definitions:

Annual Output

The total production or output of a good or service in a year.

Capital-labor Ratio

The ratio of the total capital employed by a firm to the number of its labor force, indicating the amount of capital used per worker.

Production Function

Function showing the highest output that a firm can produce for every specified combination of inputs.

Annual Output

The total production or quantity of goods and services produced by a company or economy in one year.