Suppose That at a Bicycle Shop, Instead of Having Each

question 67

Multiple Choice

Suppose that at a bicycle shop, instead of having each worker assemble an entire bicycle themselves, one person welds the frames, another person works on the braking system, another person works on the tires, and another person works on the gears. This best demonstrates the concept of

• A) division of labor.
• B) microeconomics.
• C) comparative advantage.
• D) absolute advantage.