Specialization of Labor Means That

question 175

Multiple Choice

Specialization of labor means that

• A)production requires a special kind of labor
• B)the overall skill level of labor is increasing
• C)individuals produce goods other than those they want to consume
• D)individuals achieve self-sufficiency in production
• E)exchange within the economy consists of trading in services

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Definitions:

Deadweight Loss

Deadweight loss refers to the loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Single-Price Monopolist

A monopolist who charges all consumers the same price for goods or services, regardless of production cost or demand differences.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.

Average Cost Price

The average cost price is the total cost of production divided by the number of units produced, showing the average expense for each unit.