CMA Foundation · Fundamentals of Business Economics and Management · Means of Production
A firm in Surat employs 10 workers to make shirts, each doing every step, and together they make 40 shirts a day. After the work is split into specialised stages, the same 10 workers make 120 shirts a day. By how much has output per worker risen as a result of specialisation?
Output per worker rose by 8 shirts per day. Before specialisation each worker averaged 40/10 = 4 shirts, and afterwards 120/10 = 12 shirts. The increase is 12 minus 4, which is 8. The figure 12 is only the new productivity level, not the gain.
- A8 shirts per worker per dayCorrect
- B4 shirts per worker per day
- C12 shirts per worker per day
- D3 shirts per worker per day
Explanation
Before: 40 / 10 = 4 shirts per worker. After: 120 / 10 = 12 shirts per worker. The rise is 12 - 4 = 8 shirts. Option 12 gives the new level, not the increase, and option 3 is the ratio of tripling, not the rise.
Did you get it right without looking?
One question tells you little. A timed set on Means of Production shows your real accuracy, how long you take and where you lose marks.
More Means of Production questions
- Rohan starts a bakery in Pune. He invests Rs 4,00,000 of his own savings, which could otherwise earn 10% interest a year, and he gives up a …
- Which of the following risks borne by an entrepreneur is classified as an uncertainty that cannot be insured, according to Frank Knight's vi…
- Meera Textiles of Surat pays rent, wages and interest in full, and the owner Meera earns the remaining surplus, which may be positive or neg…
- According to Adam Smith's pin factory illustration, which of the following is NOT cited as a reason why division of labour raises productivi…
- A workshop with 4 workers, each making whole units alone, produces 40 units per day in total. After dividing the work into specialised tasks…
- Meera Textiles in Surat launches a new line of eco-friendly dyed fabrics, a product no competitor in the region offers. Which function of an…