A Disadvantage of Team Production Compared to Contracting Out Is

question 145

Multiple Choice

A disadvantage of team production compared to contracting out is that

• A) transaction costs are often higher with team production.
• B) the level of specialized knowledge required by team production is greater than with contracting out.
• C) the problem of shirking must be more carefully addressed with team production.
• D) team production increases the cost of production in most situations.

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Definitions:

Dahomey

A historical kingdom in West Africa, known for its powerful military, wealth through trade, and role in the transatlantic slave trade.

Asante

The Asante (or Ashanti) are an ethnic group native to the Ashanti Region of modern-day Ghana, known for their rich cultural heritage, historical kingdom, and influential role in the region's history, especially during the Atlantic slave trade.

Slave Trade

The forced movement and sale of enslaved Africans within the international trading system, characterized by immense human suffering, cultural disruption, and economic exploitation.

Mercantilist Theory

An economic theory that emphasizes government regulation of international trade to generate wealth and strengthen national power, advocating for a positive balance of trade.