In the Long Run,a Reduction in Productivity Will Cause

question 26

Multiple Choice

In the long run,a reduction in productivity will cause

• A)an increase in the capital-labor ratio and an increase in consumption per worker.
• B)an increase in the capital-labor ratio and a decrease in consumption per worker.
• C)a decrease in the capital-labor ratio and a decrease in consumption per worker.
• D)a decrease in the capital-labor ratio and an increase in consumption per worker.

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Definitions:

Queue Time

The duration a product or job order spends waiting to be processed, not including the time actually taken to complete the task.

Non-value-added Time

Time during production that does not directly contribute to the final value of the product, such as waiting times or transportation of goods.

Financial Measures

Metrics used to evaluate a company's financial performance and health.

Lag Indicators

Measures that reflect the success or failure after the fact, helping businesses understand the results of past actions or events.