📚 Learning Guide
Labor Productivity and Decision-Making
easy

Which of the following best describes the relationship between labor productivity and decision-making processes in a firm?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Higher labor productivity always leads to faster decision-making.

B

Effective decision-making can enhance labor productivity.

C

Labor productivity has no impact on decision-making.

D

Decision-making processes solely depend on external market factors.

Understanding the Answer

Let's break down why this is correct

Answer

Labor productivity refers to how much work or output a company can produce with the resources and time it has. When a firm has high labor productivity, it means that its workers are efficient and can produce more in less time. This efficiency often leads to better decision-making processes because when workers are productive, they can focus on improving strategies and solving problems rather than just trying to keep up with basic tasks. For example, if a factory produces 100 widgets an hour instead of 50, the managers can spend more time thinking about ways to innovate and improve quality rather than just managing daily operations. Thus, higher labor productivity can enhance decision-making by allowing more time and resources for strategic planning.

Detailed Explanation

When decisions are made well, workers can do their jobs better and faster. Other options are incorrect because Some might think that just being productive means decisions are made quickly; It's a common belief that productivity and decision-making are separate.

Key Concepts

decision-making processes
Topic

Labor Productivity and Decision-Making

Difficulty

easy level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.