An Improvement in Technology That Allows Workers to Process Twice

question 57

Multiple Choice

An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause

• A) more labor to be employed because its marginal revenue product has fallen.
• B) an increase in insurance premiums.
• C) fewer workers to be employed because their marginal revenue product has decreased.
• D) more workers to be employed because their marginal revenue product has increased.
• E) fewer workers to be employed because their marginal revenue product has increased.

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Definitions:

Strategic Planning

The process of defining a company's direction and making decisions on allocating resources to pursue this direction.

Competitive Intelligence

The gathering and analysis of information about competitors, market trends, and other external factors affecting a business's competitive position.

Globalization and Localization

The balance between adapting business practices to local cultures and markets (localization) while leveraging global trends and economies of scale (globalization).

Scenario-Based Analysis

A method of planning that uses hypothetical situations to anticipate potential challenges and devise strategic responses.