Occupations X and Y Employ Persons with the Same Productivity

question 66

Multiple Choice

Occupations X and Y employ persons with the same productivity. Workers in the two occupations work the same number of hours per day when on the job. Employment is stable throughout the year in X, while Y is characterized by seasonal layoffs. How will the hourly wage rate and annual earnings compare in the two occupations?

• A) The hourly wage rate will be higher in X, but the annual earnings will be higher for Y.
• B) Both the hourly wage rate and annual earnings will be higher in X.
• C) Both the hourly wage rate and annual earnings will be higher in Y.
• D) The hourly wage rate will be higher in Y, but the annual earnings will likely be higher for X.

---

Definitions:

Low-Cost Leadership

A business strategy where a company becomes the lowest cost producer in its industry without sacrificing quality.

Raw Material Waste

Unwanted or unusable materials generated during the production process or from the consumption of raw materials, which can impact efficiency and environmental sustainability.

Competitive Advantage

The unique attributes or capabilities that allow an organization to outperform its competitors, resulting in greater sales or margins and/or retaining more customers.

Customization

The process of modifying or building a product or service to meet the specific requirements or preferences of an individual user or group.