Question

The production and operations manager at a large shoe factory in Fall River, Massachusetts, notices that the total number of hours worked by production employees has increased 12 percent, while the number of pairs of shoes ready for shipping has dropped 6 percent this year over last year. This means:__________.A) the inflation rate is unchanged. B) the demand for shoes is decreasing. C) the manager's calculations cannot be correct. D) productivity has decreased. E) the gross national product has increased by 6 percent.

Answer 1

Answer:

The answer is D

Explanation:

The correct option is D. - productivity has decreased. Productivity is the quality of being able to produce goods and services. It is a measure of efficiency in production.

Since the number of hours worked by employees increased while while the number of shoes ready for shipping (production) dropped, this means that the efficiency has dropped.

Option A is wrong because there is no where that tells us that the price of inputs has increased.