Which of the following might be an example of increased efficiency in manufacturing?
A) cutting the amount of labor required to make the product
B) cutting the price of the product
C) increasing sales of the product
D) increasing advertising for the product
Answer: A
Explanation: Efficiency must involve reducing the input-to-output ratio in some way. Cutting the amount of labor reduces the amount of input and so marks an increase in efficiency. Cutting the price does not affect the amount of resources and labor that go into the product, nor does it improve the product itself, so it is not an efficiency measure. Increasing sales and advertising similarly do not change the input-output ratio so they do not increase efficiency.
You might also like to view...
What is race norming?
A.Treating a range of scores as being similar B. Establishing different norms for hiring members of different racial groups C. A legal quota system that protects interests of people with disabilities D. Basing selection decisions on a common norm for all races, regardless of impact E. Use of cognitive tests that discriminate against women and people with disabilities
The share development index is equal to ________
A) market share index multiplied by share potential index B) market share index divided by share potential index C) market share index divided by the total volume of units sold D) share potential index divided by the total volume of units sold E) share potential index multiplied by the total volume of units sold