Suppose That in Japan One Worker Can Produce Either Four

question 287

Multiple Choice

Suppose that in Japan one worker can produce either four cars or five tons of grain per year.What is the opportunity cost of producing one car in Japan?

• A) 0.4 tons of grain
• B) 0.8 tons of grain
• C) 1.25 tons of grain
• D) 2.5 tons of grain

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Definitions:

Worker Fatigue

The physical and mental weariness resulting from prolonged work or excessive stress.

Mass Production

The large-scale manufacturing of goods using standardized designs and assembly-line techniques to achieve economies of scale.

Lean Production

A systematic method for waste minimization within a manufacturing system without sacrificing productivity.

Continuous Process Improvement

An ongoing effort to improve products, services, or processes by making incremental changes or implementing major overhauls to improve efficiency and quality.