Which of the Following Statements Is True About the Division

question 119

Multiple Choice

Which of the following statements is true about the division of labour?

• A)It causes the marginal product of labour to increase,but it has no effect on the average product of labour.
• B)It was first thought of by David Ricardo in his example of a hat factory.
• C)It is an idea that has little application in the real world.
• D)Its application results in both the marginal and average product of labour increasing.

---

Definitions:

Marginal Utility

A concept in economics that represents the additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Budget Allocation

The process of distributing available financial resources among different departments, projects, or sectors within an organization or government.

Utility Maximized

The point at which a consumer achieves the highest level of satisfaction possible, given their budget constraints and the prices of goods and services.

Price of Goods

The amount of money required to purchase a particular good or service in a market.