Question

Aaron opens a bicycle store. Which of the

following gives the best example of how Aaron
uses the scarce resource of labor?

Answer 1

Answer: Aaron hires someone to work the front desk so he can focus on bicycle repairs.

Explanation: This example best illustrates how Aaron is using the scarce resource of labor. By hiring someone to manage the front desk and handle administrative tasks, Aaron is allocating human labor to tasks that are essential for the operation of his bicycle store. This allows him to focus his own labor and expertise on bicycle repairs, which is likely the core function of his business. This allocation of labor optimizes the use of this limited resource and contributes to the efficiency and effectiveness of his business.

Answer 2

Answer: Aaron hired an employee to do bicycle repairs

Step-by-step explanation:

Labor refers to the physical and mental effort put into production by human beings.

Since Aaron opens a bicycle store, he can hire an employee to do bicycle repairs. Therefore, in this case, labor will be put into productive use for the company.