In a Particular Country in 1998,the Average Worker Needed to Work

question 48

Multiple Choice

In a particular country in 1998,the average worker needed to work 40 hours to produce 100 units of output.In that same country in 2008,the average worker needed to work 36 hours to produce 72 units of output.In that country,the productivity of the average worker

• A)decreased between 1998 and 2008,so we would expect the standard of living to have decreased accordingly.
• B)increased between 1998 and 2008,so we would expect the standard of living to have increased accordingly.
• C)decreased between 1998 and 2008,so we would expect inflation to have decreased accordingly.
• D)increased between 1998 and 2008,so we would expect inflation to have increased accordingly.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.

Net Sales

Total sales revenue minus returns, allowances for damaged or missing goods, and discounts.

Quarterly

Occurring every three months or four times a year, often used in the context of financial reports and payments.