Technician a States That Many Automotive Technicians Invest Well Over

question 17

Multiple Choice

Technician A states that many automotive technicians invest well over $20,000 in their tool sets. Technician B states that automotive technicians should think of their tools as an investment that pays for itself over time. Who is correct?

• A) Technician A
• B) Technician B
• C) Both A and B
• D) Neither A nor B

Apply the concept of opportunity cost in the context of labor economics.

Define the concept of the marginal product of labor.

Differentiate between diminishing and negative marginal product of labor.

Understand the relationship between productivity and real wages historically.

---

Definitions:

Average Rate of Return

A method of determining the profitability of an investment by dividing the average annual profit by the initial investment cost.

Total Income

The sum of all revenues and gains that a person or business receives over a period of time, before any expenses are subtracted.

Average Rate of Return

A metric that determines the earnings from an investment by dividing the mean yearly profit by the cost of the initial investment.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.