Worksheet B: Solutions

Name: __________________________

Please write short answers to the following three questions. You can find the answers at some of the web sites bookmarked on your computer, and from information in the video.

1. How does specialization improve the quality of products, and why might it have been difficult to work at the Ford factory in the 1920's?

Elements of Solution: Adam Smith first wrote that specialization allows workers to produce more, and the items they produce will be more consistent in their qualities.

2. List examples of current lending rates for buying a Ford and a new home?

Elements of Solution: These change daily and will need to be looked up on the following web sites:

Select a Ford to buy and it will give you an interest rate: https://www.onlinevehiclefinancing.com/aaui?ATD_SERVLET_ACTION=INCENTIVESPLUS&ATD_SERVLET_PAGE_CLASS=FordCredit

Countrywide Rates Today:
http://www.countrywide.com/rates/rates.asp?customer=

3. How did increasing his workers wages help Ford sell cars?

Elements of Solution: Ford's philosophy was that his workers should be paid enough to buy a car. Although some think he said this to improve his workers lives, most believe he realized there would be more profit for him if everyone owned cars.