The Construction Industry in the United States

Answer the following questions to check your understanding of the story.

Why could a worker at a large construction firm be more productive than a worker at a smaller construction firm?

A worker at a large construction firm could be more productive because ___________.

a) there are more opportunities for pay increases

b) of greater specialization

c) she is more skilled than a worker at a smaller firm

d) each worker is a “jack of all trades”

How does the construction firm’s total product curve change as it hires more workers?

As the construction firm hires more workers, ___________.

a) a movement up along the total product curve occurs

b) the total product curve shifts downward

c) a movement down along the total product curve occurs

d) total product curve shifts upward

How does the total product curve change when construction firms use robots for bricklaying, welding, and material handling?

When construction firms use robots for bricklaying, welding, and material handling, the total product curve shifts ___________.

a) downward because workers do less work

b) upward because workers become more productive

c) upward because firms make more profit

d) downward because using robots increases fixed costs

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