The Following Sequence Shows Four Operations for a Computer Chip

question 26

Multiple Choice

The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 500 chips/hour
Step 2: 250 chips/hour
Step 3: 200 chips/hour
Step 4: 550 chips/hour
Suppose the utilization is 70 percent of effective capacity.What is the actual output of the process?

• A)140 chips/hour
• B)350 chips/hour
• C)175 chips/hour
• D)200 chips/hour

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Definitions:

Multiplier

In economics, the factor by which gains in total output are greater than the change in spending that caused it, often used in the context of fiscal policy effects.

Equilibrium GDP

The level of GDP at which total supply and total demand in the economy are equal, resulting in no inherent tendency for the economy to change its level of output.

Full Employment GDP

The maximum output that an economy can produce without causing inflation, when all available resources are utilized efficiently.

Keynes

From the UK, this economist's theories ushered in a new era for macroeconomic practice and governmental economic policy-making.