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The Construction Industry in the United States

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Large construction firms in the United States (500+ workers) are four times more productive than firms with fewer than 20 workers. The industry has been slow to adopt robots that could handle tasks like bricklaying, welding, and material handling.—economist.com

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 ___________.

Wrong! - Is a “jack of all trades” more productive than a specialist? Are workers at larger firms necessarily more skilled than workers at smaller firms? Does productivity depend on pay increases?

Correct! - A worker at a smaller firm must perform many different tasks but a worker at a larger firm who can specialize in a small number of tasks is more productive. A large firm can support greater division of labor.

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

As the construction firm hires more workers, ___________.

Wrong! - The total product curve is an upward-sloping curve that shows how the quantity of completed construction projects changes as the quantity of labor employed changes.

When does a movement occur along the total product curve and when does the total product curve shift?

That's Right! - The total product curve is an upward-sloping curve that shows how the quantity of completed construction projects changes as the quantity of labor employed changes. As the construction firm hires more workers, the firm completes more construction projects. There is a movement up along the curve.

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 ___________.

Wrong! - The use of robots for bricklaying, welding, and material handling means that a construction firm can complete more construction projects with a given quantity of workers.

Does the total product curve shift upward or downward?

Well Done! - The use of robots for bricklaying, welding, and material handling means that a construction firm can complete more construction projects with a given quantity of workers. Each worker becomes more productive.

The total product curve shifts upward.

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