A furniture-restoration business has experienced slower growth in income because unemployment has reduced local spending. The owner wants to increase produc...
Question 1 Report
A furniture-restoration business has experienced slower growth in income because unemployment has reduced local spending. The owner wants to increase productivity, measured as repaired items per worker per hour.
Which one of the following actions is most likely to increase the firm's productivity? [1]
A. Paying higher taxes to the government
B. Training workers to use a computer-controlled cutting machine
C. Reducing the number of hours that machinery can be used
D. Increasing the price charged for each repaired item
Answer Details
(a) The action most likely to increase productivity is training workers to use a computer-controlled cutting machine. [1]
Productivity here is repaired items per worker per hour. Training can enable workers to use machinery more efficiently and produce more output in the same time. Paying higher taxes does not directly improve output per hour, reducing machinery use restricts production, and increasing price changes revenue rather than physical productivity.
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