Question

Question Four

All the statements below are false. Explain why each statement is false.

1. Assume a manager has 20 workers working in her division. All workers receive the same wage rate. If that is true, then the cost of assigning particular workers to particular jobs is the same.

2. Four people on working on a group project at work. The tasks are to research information, to run statistical tests, to write up the analysis, and to prepare the presentation. If Heather is the best writer in the group, then we should assign her the task of writing up the analysis.

3. If workers in Detroit are better at making cars than workers in Japan, then it would never make sense for the U.S. to import cars from Japan.

Answer 1

The manager has 20 workers who receive the same wage rate. The cost differs for each worker as each worker might be doing some different task, the firm may face reduced efficiency due to worker absenteeism, deteriorating labour relations, all of which may cause cost rises for assigning jobs to workers.

Heather might be the best writer in the group, but an analysis of the statistical tests has to be written, if heather is not good at analysis of the research information than there is no point in assigning her the task as she would need someone's help to complete the research information.

The alternative to import cars from Japan has several benefits as the proportion of workers who are better in Detroit than in Japan also matters. If there are only 10 workers better in Detroit, those 10 wouldn't be able to justify they would be able to meet the demand. Secondly, even if workers are better in Detroit the availability of world class technology and equipment also matters to justify that U.S. should never import cars from Japan.