Tesla Motors manufacturers its cars at a plant in Fremont, California.
At this plant, Tesla is able to take advantage of the high level of technical training possessed by its American workers, but it also sacrifices the ability to pay lower wages had it chosen to open its plant in a low-wage country such as Mexico, India, or China. In deciding to open the Fremont plant, Tesla
A) eroded some of its competitiveness in the luxury electric car market because of its increased cost of production.
B) faced a trade-off between higher cost and lower precision.
C) faced no trade-offs because employing more technically-skilled workers increased efficiency.
D) adopted a negative technological change because it chose high-skilled workers over low-paid workers.
Question 2
Refer to Table 10-1. Using the table above, what is the approximate average annual growth rate from 2013 to 2016?
A) 1 B) 1.5 C) 2 D) 3
