A Factory That Manually Produces Pens Employs Ten Workers

question 91

Multiple Choice

A factory that manually produces pens employs ten workers.The total output when one worker produces all the parts of a pen himself is 100 pens.When different workers focus on producing different parts of the pen,the output increases to 400 pens.In other words,_____ increases the returns from the same level of inputs.

• A)increasing the capital-labor ratio/irs
• B)product diversification
• C)a piece rate wage system
• D)specialization of labor

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Definitions:

Registered Retirement Savings Plan

A retirement savings and investing tool for employees and the self-employed in Canada, offering tax benefits.

Pay-as-you-go Philosophy

A financial strategy where expenses are paid for as they occur, rather than using credit or accumulating debt.

Reward Philosophy

An organization’s formal approach to managing employee compensation, benefits, and recognition in alignment with overall business strategy.

Earnings Philosophy

The underlying beliefs and principles that guide how an organization compensates its employees, reflecting values concerning fairness, performance, and the market.