Measuring the Economy

Question 23 • FL-2106020-M/J Civics Advanced B

Which scenario illustrates how higher productivity might result in a higher standard of living?

Answer

Kerzi’s company has met its production goals for the last three years. Last year the company achieved its goal by increasing the number of hours each employee works by five hours per week. This year, the company had to add more employees and increase the workweek.

Firouz’s company has automated much of its production. As a result, the company has been able to cut its workforce by half and still increase the factory’s output. The lower number of hours worked and the high output has increased the company’s productivity.

Liam’s company has streamlined production, which has resulted in the company making more goods in less time. As a result, the company has shortened the workday to six hours. Liam uses his extra free time to attend college classes. He hopes a degree will lead to a higher-paying career.

Tamira’s company has just been awarded a large contract to make airplane parts for the US military. The company won the contract by promising to provide the parts in a short period of time. To achieve high productivity, the company is increasing the workweek by 10 hours.

Explanation

Higher productivity means producing more goods with the same or fewer resources, such as time or labor. In choice C, streamlining lets the company make more goods in less time, so it shortens the workday and Liam can use his extra time to attend college, potentially leading to a higher-paying career. The other scenarios rely on adding work hours or employees, or cutting workers, rather than showing how productivity improves workers’ well-being.

AI-written and checked against the verified answer.

More from this Course

Federal Budget

The Role of Entrepreneurs

Quiz

1 verified answers

Federal Budget