Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to determine if Union labor prices are the cause of Detroit's financial woes, which of the following should be used?
A) labor content per vehicle
B) labor productivity
C) total production
D) A or B
E) None of the above, salary is the best comparison.

Question

Quizplus · Accepted Answer

Comparing labor content per vehicle and labor productivity would provide a better understanding of the efficiency of the labor force in Detroit compared to foreign countries. This would give a more accurate picture of whether labor costs are the primary factor in Detroit's financial struggles. Total production is also relevant to consider, but it may not provide as much insight as the other two factors. Comparing salaries alone is not sufficient to understand the root causes of financial difficulties in the automotive industry.

Instead of Comparing the Salaries of Detroit Autoworkers to Foreign