Which of the Following Best Explains the Term 'Learning Curve

question 49

Multiple Choice

Which of the following best explains the term 'Learning Curve' originally developed in the American aircraft industry? 

• A) The cost price per aeroplane decreased at a fixed percentage as the cumulative production volume of a particular type of aircraft doubled. 
• B) The cost price per aeroplane increased at a fixed percentage as the cumulative production volume of a particular type of aircraft doubled. 
• C) The cost price per aeroplane decreased at a variable percentage as the cumulative production volume of a particular type of aircraft doubled. 
• D) The cost price per aeroplane increased at a variable percentage as the cumulative production volume of a particular type of aircraft doubled.

---

Definitions:

Velocity of Money

The speed at which currency is transferred from one deal to another and the frequency of usage of a currency unit within a specific timeframe.

Unemployment

The state of being without a job despite actively looking for work, usually measured as a percentage of the labor force.

PQ Remains Same

A situation in economic terms where the price level (P) and quantity (Q) of goods and services in the market stay unchanged over a period.

Velocity V

Velocity V typically refers to the velocity of money, a measurement of the rate at which money is exchanged in an economy.