Consider a Hypothetical Economy in Which Only Computers and Shoes

question 118

Multiple Choice

Consider a hypothetical economy in which only computers and shoes are produced and in which computer production is capital intensive and shoe production is labor intensive. If two resources are being used, labor and capital, then the capital-labor ratio would be:

• A) higher in the shoe industry.
• B) lower in the computer industry.
• C) the same in both industries.
• D) higher in the computer industry.

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Definitions:

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit, considering the cost and demand functions.

Human Capital

The grouped skillset, awareness, or subtle properties of individuals that can be utilized to create financial benefits for the individuals, the organizations they work for, or their local communities.

Discriminated

Treated unfairly or prejudicially against an individual or group based on characteristics such as race, age, sex, or religion.

Performance Reviews

Formal assessments where an employee's job performance is evaluated, typically by their manager, against agreed standards.