Mike Used to Work on the Assembly Line at General

question 65

Multiple Choice

Mike used to work on the assembly line at General Motors in Oshawa,making over 20 dollars an hour.Recently an industrial robot was invented that is able to do the same job and requires a technician making only 10 dollars an hour to check the specifications twice per shift.What has happened to Mike's job?

• A) It was reclassified.
• B) It was deskilled.
• C) It was deindustrialized.
• D) It was downsized.

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Definitions:

Share Repurchases

Occurs when a firm repurchases its own shares.

EPS

Earnings Per Share (EPS) is a financial ratio calculated by dividing the company's net profit by the number of its outstanding shares, indicating how much money a company makes for each share of its stock.

Myron Gordon

An economist best known for his work on dividend policy and stock valuation, including the Gordon Growth Model which relates a company's dividend policy to its stock valuation.

John Lintner

A prominent economist known for his work on dividend policies and the capital asset pricing model (CAPM).