If Labour Hours Increase, the Use of Natural Resources Remains

question 21

Multiple Choice

If labour hours increase, the use of natural resources remains the same and output remains the same, productivity will

• A) increase.
• B) remain the same.
• C) decrease.
• D) cannot be determined.

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Definitions:

Absolute Quantities

A term used to describe the total amount of a product, asset, or resource, measured independently and without comparison to other entities.

Free Trade

A policy to eliminate discrimination against imports and exports, allowing goods to move freely between countries without tariffs or quotas.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than its competitors.

Dumping

The practice of a company selling a product in a foreign market at a price lower than its cost of production or lower than the price in its domestic market.