Division of labor increases the output of society by
A) eliminating scarcity.
B) reducing the choices people have to make to a more manageable number.
C) ensuring that people are happier in performing their work.
D) allowing resources to specialize in the tasks for which they have a comparative advantage.
D
You might also like to view...
Refer to the table above. If the rental price of machines is $40 per day, up to how many machines should the firm rent to maximize profits?
A) 2 B) 4 C) 6 D) 7
Assuming the market is in equilibrium in the graph shown with demand D and supply S2 at a quantity of 8, consumer surplus is:
A. $32.
B. $11.
C. $7.
D. equal to the producer surplus.
If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then
a. the law of diminishing returns is in effect. b. long-run average costs must be decreasing. c. the firm is experiencing diseconomies of scale. d. the firm should increase production. e. the firm is experiencing constant returns to scale.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.