The Specialization of Labor

question 19

Multiple Choice

The specialization of labor:

• A)increases productivity without creating any problems.
• B)reduces productivity and is usually eliminated by business firms.
• C)can create problems of boredom and repetitive motion injuries.
• D)prevents the introduction of more sophisticated and efficient production techniques.
• E)ignores individual preferences and natural abilities.

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Definitions:

Edgeworth Box

A diagrammatic tool used in microeconomics to show various distributions of resources or outcomes between two agents in an economy.

Contract Curve

In economics, a curve representing the set of optimal allocation points for two parties trading two goods, assuming utility maximization.

Competitive Equilibrium

A state in a market where supply equals demand, and the prices enable buyers and sellers to be in equilibrium.

Demand Equals Supply

A market equilibrium condition where the quantity demanded by consumers at a specific price level is exactly equal to the quantity supplied by producers.