The First Economist to Point Out the Importance of Specialization

question 161

Multiple Choice

The first economist to point out the importance of specialization of labor was

• A)Leonardo da Vinci.
• B)Adam Smith.
• C)David Ricardo.
• D)John Maynard Keynes.
• E)Enrico Caruso.

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Definitions:

Demand For Labor

The desire or need for employees by employers, determined by the wage rate and the level of production required by the firm or economy.

Price Floor

A government or regulatory-imposed minimum price for a good or service, intended to ensure that the market price does not fall below a certain level.

Surplus

The amount of a product or resource that exceeds the amount actually utilized or demanded.

Binding Minimum Wage

A government-set minimum wage that is above the equilibrium wage, potentially leading to unemployment because the quantity of labor supplied exceeds the quantity demanded.