Businesses That Produce and Sell Tangible Products Such as Steel

question 219

Multiple Choice

Businesses that produce and sell tangible products such as steel and machines are part of the

• A) manufacturing industry.
• B) knowledge-based industry.
• C) service industry.
• D) production sector.

---

Definitions:

Union Shop

A workplace where employees are not required to join the union prior to being hired, but must join soon after they start their employment.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, in a given time period.

Diminishing Returns

A principle stating that as investment in a single area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant.

Labor Curve

A graphical representation showing the relationship between the quantity of labor supplied and the wage rate.