Which of the Following Is TRUE Regarding Division of Labor

question 258

Multiple Choice

Which of the following is TRUE regarding division of labor?

• A) Refers to the differences in worker skill levels.
• B) The advantages of division of labor were first extensively analyzed by Charles Babbage.
• C) Adam Smith suggested paying exactly the wage needed for the particular skill required.
• D) Refers to the division between workers and business owners.
• E) Labor efficiency is improved because employees have less need to change jobs or tools.

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Definitions:

MPC (Marginal Propensity To Consume)

Measures the proportion of additional income that a consumer spends on goods and services rather than saving.

GDP

GDP stands for Gross Domestic Product, which is an indicator of a nation's economic health, calculated by adding up the value of every good and service produced for a certain period.

Multiplier

A factor that quantifies the additional economic impact of spending; it measures by how much a change in investment or government spending will affect the total economic output.

MPC (Marginal Propensity To Consume)

The proportion of additional income that an individual consumes rather than saving.