Multiple Choice
What does it indicate when production occurs inside the production possibilities frontier (PPF)?
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2. Introductory Economic Models
Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
What was a result of the division of labor at Henry Ford's plants?
A
Increased productivity and lower production costs
B
Reduced output due to repetitive tasks
C
Higher prices for Ford automobiles
D
Decreased specialization among workers
Verified step by step guidance1
Understand the concept of division of labor: it involves breaking down the production process into smaller, specialized tasks performed by different workers.
Recognize that Henry Ford applied division of labor in his plants by using assembly lines, where each worker performed a specific task repeatedly.
Analyze the effects of this specialization: workers became more skilled at their specific tasks, which increased the speed and efficiency of production.
Consider the economic outcomes: increased efficiency led to higher productivity, meaning more cars could be produced in less time.
Connect increased productivity to cost implications: with faster production and specialization, the cost per unit decreased, allowing Ford to lower prices and increase output.
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