jimmyboy76453 wrote:
I just took an online final exam for my college, and one question frustrated me so much that I had to post about it. The question says something like this: "Suppose a company finds that an increase in labor increases output more than does an increase in machines. If the company wants to maximize profits, it should:
a. substitute machines for labor
b. substitute labor for machines"
There was a C and a D, but I forget what they were and they weren't the correct answer anyway; it's either a or b.
Obviously, I know that the company should increase its labor and decrease its machines to make more money, but I could NOT figure out which answer above means that! If I'm taking machines out and putting labor in, does that mean I'm substituting labor for machines or substituting machines for labor??? AARGH!! !
I just gave up and guessed, but I have no idea whether I guessed right. Passed the test anyway, but not with the score I was hoping to get.
Good point.
While reading your post I thought to myself "since the right answer is the opposite of mechanization -it's obviously A". But come to think of it....either phrase (A or B) could mean either thing.
To "substitute machines for labor" could mean "substitue machines WITH labor"(what I took it to mean), or it could mean "put in machines as substitutes for the laborers that you remove"(the exact opposite meaning).
It IS ambiguous. The writers of the test were idiots! If you know the right answer (put in labor, and take away machines) I am not sure which answer you would pick to show that you know the right answer.