The formal study of economics began when Adam Smith (1723–1790) published his famous book The Wealth of Nations in 1776 . In the first chapter of The Wealth of Nations, Smith introduces the idea of the division of labor. Define "division of labor" and illustrate with an example
Division of labor is defined as the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers. The concept of division of labor can be explained with the help of an example. Let us consider a factory where pins are made. There are multiple tasks involved in making a pin, including the steps involved in drawing out a piece of wire, cutting it to the right length, straightening it, putting a head on one end and a point on the other, and packaging pins for sale.
You might also like to view...
A decrease in expected future income leads to a
A) leftward shift of the supply of loanable funds curve. B) leftward shift of the demand for loanable funds curve. C) rightward shift of the demand for loanable funds curve. D) downward movement along the supply of loanable funds curve. E) rightward shift of the supply of loanable funds curve.
The Bank Act of 1935 restructured the Federal Reserve System (FRS) in which of the following ways?
(a) The FRS Board of Governors gained discretionary control over bank reserves and margin requirements for loans against securities. (b) The Governor's Committee was renamed the Federal Open Market which was comprised of 12 members, 7 of whom were governors on the FRS Board. (c) The secretary of the U.S. Treasury and comptroller of currency were removed from the FRS Board. (d) All of the above
Assume that two individuals, A and B, are willing to trade products X and Y. Before a possible trade, A has the following marginal rates of substitution of X for Y (or of Y for X): MRSXYA = 0.80 (or equivalently, MRSYXA = 1.25)
Also, before a possible trade, B has these marginal rates of substitution of X for Y (or of Y for X): MRSXYB = 1.50 (or equivalently, MRSYXB = 0.67). Determine if trade can take place that would benefit either or both. If trade can benefit either or both, determine who will trade for what.
Suppose that when the price of hamburgers decreases, the Ruiz family increases their purchases of ketchup. To the Ruiz family
A) hamburgers and ketchup are complements. B) hamburgers and ketchup and substitutes. C) hamburgers and ketchup are normal goods. D) hamburgers are normal goods and ketchup is an inferior good.