In What Way Did Adam Smith and Karl Marx Have

question 24

Multiple Choice

In what way did Adam Smith and Karl Marx have similar views about work relationships in industrial societies, even though their reasons were different?

• A) Both were opposed to the division of labour.
• B) Both were opposed to excessive bureaucracy.
• C) Both felt that unions did not really provide benefits to workers.
• D) Both felt that the exploitation of workers was wrong.

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Definitions:

Average Product

It is the output that is produced, on average, by each unit of input in the production process, like labor or machinery.

Production Function

A mathematical relationship that describes how inputs are transformed into outputs in the production process, illustrating the maximum output achievable from a given set of inputs.

Marginal Product

Marginal product is the additional output a firm gains from employing one more unit of input, holding all other inputs constant.

Labor

The human effort, either physical or mental, that is used in the production process to generate goods or services.