With a Fixed Amount of Capital, 300 Workers Produce 9,000

question 106

Multiple Choice

With a fixed amount of capital, 300 workers produce 9,000 cars. The average labor productivity is

• A) 0.03.
• B) 3.
• C) 27.
• D) 30.

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Definitions:

Business Decisions

Choices made by individuals or groups in a corporate setting regarding the direction, operations, and strategy of a business.

Direct Method

A cash flow statement preparation method that lists major cash receipts and payments during the period, directly showing sources and uses of cash.

Net Income

A calculation that determines a company's profit by deducting total expenses from total revenues, serving as an essential indicator of financial health.

Investing Activities

Part of a company's cash flow statement that reports the purchase and sale of long-term investments and property, plant, and equipment.