Questions Refer to the Following Passage

question 12

Multiple Choice

Questions refer to the following passage.
"To take an example, therefore, from a very trifling manufacture; but one in which the division of labour has been very often taken notice of, the trade of the pin-maker; a workman not educated to this business . . . nor acquainted with the use of the machinery employed in it . . . could scarce, perhaps, with his utmost industry, make one pin in a day, and certainly could not make twenty.
"But in the way in which this business is now carried on . . . One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving the head; to make the head requires two or three distinct operations . . . and the important business of making a pin is, in this manner, divided into about eighteen distinct operations.
"I have seen a small manufactory of this kind where ten men only were employed, and where some of them consequently performed two or three distinct operations [and] could, when they exerted themselves . . . make among them upwards of forty-eight thousand pins in a day. Each person, therefore, making a tenth part of forty-eight thousand pins, might be considered as making four thousand eight hundred pins in a day. But if they had all [worked separately], they certainly could not each of them have made twenty, perhaps not one pin in a day."
The Division of Labour (1776) , Adam Smith
-Which of the following historical claims is best supported by Adam Smith's observations of a pin factory?

• A) Pin-making requires a large number of workmen.
• B) Specialization of labor leads to greater productivity and output.
• C) Manufacturing operations were difficult to coordinate in eighteenth-century Britain.
• D) The trade of a pin-maker was not highly ranked in society.

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Definitions:

Overdraft Protection

A financial service that prevents checks, ATM withdrawals, and other debit transactions from causing an account balance to fall below zero, often involving a fee.

Dishonored Check

A check that a bank refuses to cash or pay because there are insufficient funds in the account.

Sufficient Funds

Refers to having enough money in an account to cover checks or other withdrawal requests.

Federal Reserve Bank

One of the 12 regional banks that make up the Federal Reserve System, acting as the central banking system of the United States.