Answer:
The human capital theory
Explanation
The human capital theory explores the relationship between investment in human capital and earnings.
Investment in human capital can take the form of education or training.
The theory suggest that those that invest in human capital earn higher income
The human capital theory also explores pattern of earnings. The theory suggests that the earnings of young people would be low as they would forgo earnings to invest in human capital . Earnings would increase as one gets older because old people invest less in education and training
Based on economic indices, when we want to measure wage inflation in the labor market, we use the "<u>Consumer Price Index."</u>
The consumer price index, often referred to as CPI, is conducted by the <u>Bureau of Labor Statistics. </u>
CPI is carefully made to measure the price changes encountered by urban consumers.
It is believed that the urban dwellers formed about 93 percent of the United States population.
Consumer Price Index is used to measure the relationship between wage and inflation.
Hence, in this case, it is concluded that the correct answer is "Consumer Price Index."
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Answer:
The correct answer is b. Benchmarking
.
Explanation:
Benchmarking is a system where some products or services and any other activity that stands out in another organization are taken as "references", in order to compare them with those carried out internally and to make improvements or adjustments to the processes. This process takes into account both leading activity or good practices, and determines to some extent levels of effectiveness that are achieved within an organization. Companies take this activity to determine their direction, emphasizing their internal situation and adapting the processes to achieve the best possible efficiency.
Answer:
A) The bulk of Airline A's profits came from other income which included the sale of some of its fleet.
Explanation:
Investment in favor of Airline A would severely be hindered if it is found out that the bulk of Airline A's profits came from other income which included the sale of some of its fleet.
This is because it would mean that Airline A is unable to keep up with its costs and thus is divesting its operations. Divesting is never a good sign for a firm looking to gain advantage in the future. Furthermore this explains why there was a sudden shift from loss making in the previous years to profits in the current year. A detailed inspection would be needed to eliminate uncertainty and as such any investment decisions in favor of airline A would not be justified.
Option B, C and D is efficient management and would make Airline A more lucrative for investment as it would mean management is eagerly looking to cut inefficient operations.
Option E would require more information to weaken the argument.
Hope that helps.
