Workers in Adam Smith's Famous Pin Factory Example, Who Were

question 238

Multiple Choice

Workers in Adam Smith's famous pin factory example, who were proficient in pin production, then faced the problem of

• A)too many different tasks.
• B)becoming bored with their jobs.
• C)having to exchange pins for other goods and services.
• D)not having enough pins to purchase other goods and services.

Understand the factors that increase productivity and their importance for economic growth.

Acknowledge the role of technology in improving goods and services production.

Assess the importance of international trade and investment for economic development.

Analyze the impact of government policies on economic growth, including trade barriers and investment flows.

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Definitions:

System 1

A term from psychology, referring to the fast, automatic, and often subconscious way of thinking, as opposed to the slower, more deliberate thought processes of System 2.

System 2

A term often used in behavioral economics, referring to slow, deliberative, and analytical thinking, contrasted with fast, instinctive, and emotional 'System 1' thinking.

Neoclassical Assumption

Underlying principles of neoclassical economics that include rationality, individuals maximizing utility, firms maximizing profits, and markets tending toward equilibrium.

Rational Behavior

Human behavior based on comparison of marginal costs and marginal benefits; behavior designed to maximize total utility. See rational.