State one implication of the principle of division of labor
The principle of the division of labor explains how productivity of a group can increase as its members become specialized. However, to be successful, the group's members must coordinate their activities and their investments in capital goods.
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An efficient allocation of goods in an exchange economy means that
A) goods were produced by the most efficient technology available. B) no one can be made better off without making somebody else worse off. C) those made worse off are not hurt as badly as the benefits resulting from those made better off. That is, there is a net positive gain. D) in a particular production process one gets the maximum output for a given input.
The marginal propensity to consume (MPC) is the slope of the:
a. GDP curve. b. disposable income curve. c. consumption function. d. autonomous consumption curve.
Adam Smith
A. argued that capitalism is often confused with democracy. B. wrote Das Kapital. C. said that the entrepreneur is motivated by self-interest. D. coined the phrase: "From each according to his ability, to each according to his needs."
The system we use to measure the value of an economy is called:
A. national income accounting. B. national expenditure accounting. C. macroeconomic summation. D. national economic valuation.