Firms Bring in Combinations of Labour and Capital to Produce

question 13

Multiple Choice

Firms bring in combinations of labour and capital to produce output.How much output can be produced from a given combination of labour and capital depends on: if the production function of a country has constant returns to scale and all input of the country has increased by 100 per cent, then its output would increase by:

• A)mineral resources, raw materials availability and other production specifics
• B)primary factors of production
• C)capital stock, education and the skills of the work force
• D)the state of technology, managerial expertise, the skills of the work force and other factors

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Definitions:

Scrap

Material that is discarded or waste from manufacturing processes, often capable of being recycled.

Downtime

The period during which an operation, system, or machine is not functional or productive.

Just-In-Time (JIT)

Continuous and forced problem solving via a focus on throughput and reduced inventory.

Inventory

A company's stock of goods, materials, and products held to fulfill future sales or production needs.