Division of and Specialization of Labor Quiz

According to the reading, who was the first author to address the subject of economics in a comprehensive way?

• Milton Friedman

• Karl Marx

• Adam Smith

• John Maynard Keynes

How many distinct tasks did Adam Smith count for making a pin?

• 10

• 15

• 18

• 20

What is the main reason why specialization in a particular small job allows workers to be more productive?

• It allows workers to focus on areas of disadvantage

• It allows workers to focus on areas of advantage due to natural factors and skill levels

• It encourages workers to learn and invent

• It allows workers to take advantage of economies of scale

What does the market allow individuals to do in terms of acquiring goods and services?

• It allows individuals to only purchase goods and not services

• It allows individuals to only purchase services and not goods

• It allows individuals to learn a specialized set of skills and then use the pay they receive to buy the goods and services they need or want

• It allows individuals to produce all the goods and services they need

What does the division and specialization of labor allow individuals and firms to do?

• It allows them to focus on areas of disadvantage

• It allows them to only focus on areas of advantage due to natural factors and skill levels

• It allows them to produce less for several reasons

• It allows them to specialize and to produce more for several reasons

What is the main reason why a business that focuses on one or a few products is more successful than firms that try to make a wide range of products?

• It allows the business to only focus on areas of advantage due to natural factors and skill levels

• It allows the business to focus on areas of disadvantage

• It allows the business to take advantage of economies of scale

• It encourages the business to learn and invent

What does a basic understanding of economics make you in terms of being a well-rounded thinker?

• It makes you a narrow-minded thinker

• It makes you a one-dimensional thinker

• It makes you a close-minded thinker

• It makes you a well-rounded thinker

What does the study of economics provide the tools to work out?

• It provides the tools to work out facts

• It provides the tools to work out puzzles

• It provides the tools to work out problems

• It provides the tools to work out questions