According to Adam Smith's Theory of Absolute Advantage, Specialization Allows

question 55

Multiple Choice

According to Adam Smith's theory of absolute advantage, specialization allows countries to increase their efficiency for each of the following reasons EXCEPT ________.

• A)labor could become more skilled by repeating the same tasks
• B)transportation costs could be lowered by producing closer to markets
• C)labor would not lose time in switching from the production of one kind of product to another
• D)higher production would provide incentives for the development of more effective working methods

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Definitions:

Poverty Line

A threshold used to determine the minimum level of income required to secure the necessities of life.

Basic Subsistence

The minimum resources necessary for maintaining the basic levels of living including food, shelter, and clothing.

Federal Government

The national government of a federal country, which holds the ultimate authority over matters that affect the country as a whole.

Homeless

The state of lacking stable, permanent, and appropriate housing, resulting in living on the streets, shelters, or in temporary accommodations.