Figure 7-1 -USX, a Steel Company, Reduced the Number of Man-Hours Required

question 101

Multiple Choice

Figure 7-1
-USX, a steel company, reduced the number of man-hours required to produce a ton of steel from 10.8 in 1982 to 3.8 in 1990, thereby eliminating 55,000 jobs.Technically, this rise in productivity means the

• A)marginal product of labor increased.
• B)average product of labor increased.
• C)average product of capital fell.
• D)marginal product of capital fell.

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Definitions:

Compounds Interest Annually

The calculation of interest on the initial principal, which also includes all accumulated interest from previous periods on a loan or deposit, done once a year.

Checking Account

A bank account that allows for the deposit and withdrawal of funds and is typically used for day-to-day transactions.

Pays Bills Online

The process of using internet banking or payment platforms to settle invoices or bills.

Compounded Daily

Describes the method by which interest is calculated on an investment or loan with the earned interest being added to the principal daily for future interest calculations.