Worksheet A: Solutions

Name: __________________________

Please write short answers to the following three questions. You can find the answers at the web sites listed. They are bookmarked on your computer.

1. What contribution did Henry Ford make to prove the importance of the specialization of labor?

Resource: Industry Week article on chronology of important events in manufacturing:
http://www.industryweek.com/CurrentArticles/asp/articles.asp?ArticleID=623

Elements of Solution: "Ford pioneered moving-assembly-line techniques in his car factory; begins operation of the world's first automobile assembly line." By doing so it allowed each worker to stand in place and perform exactly the same task over and over again.

2. What information does Ford Credit need to decide if they loan you money to buy a car?

Resource: Financing at Ford Credit explained:
http://www.fordcredit.com/creditsense/credit_basics.jhtml

Elements of Solution: They need to know your income, your history of paying back loans, and your other financial obligations.

3. Describe Ricardo's wage theory:

Resource: Wage Theory Defined briefly by Britannica:
http://www.britannica.com/eb/article?eu=77829

Elements of Solution: Ricardo and others held "that the market price of labor would always tend toward the minimum required for subsistence."