Labor Productivity Increases Over Time as Individuals Understand and Use

question 38

Multiple Choice

Labor productivity increases over time as individuals understand and use the most efficient ways to perform particular tasks.Equally important,in new production facilities,management typically learns how to manage the new operation more efficiently over time.This demonstrates how production costs eventually decline due to increasing labor productivity and management efficiency because of:

• A)diminishing returns.
• B)economies of scale.
• C)learning effects.
• D)task segmentation.

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Definitions:

Risk

The exposure to the chance of loss or damage.

Financial Institutions

Organizations that provide financial services, including banks, credit unions, insurance companies, and investment firms.

Financial Intermediaries

Institutions that act as a middleman between savers and borrowers, including banks, investment funds, and insurance companies.

Budget Deficit

The situation where a government's expenditures exceed its revenues over a specific period of time, leading to a need for borrowing or spending cuts.