Based on the Previous Year's Output,it Typically Takes 3 Hours

question 10

Multiple Choice

Based on the previous year's output,it typically takes 3 hours to produce one unit of product. Under which of the following gain-sharing plans are any productivity gains resulting in less than 3 hours of labour per unit shared between you and the company?

• A) "family of measures"
• B) Rucker
• C) Improshare
• D) Scanlon

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Definitions:

Labor Productivity

This term refers to the amount of goods and services produced per hour worked, indicating the efficiency of labor in the economy.

Per-Worker Production Function

A measure of the relationship between the average output produced by each worker and the inputs used in production.

Capital Per Worker

The average amount of capital (tools, machinery, etc.) available for each employee in the production process.

Net Present Value (NPV)

A method used in capital budgeting to evaluate the profitability of an investment or project, calculated by summing the present values of incoming and outgoing cash flows over the life of the investment.