When Adam Smith's Ten Pin Workers Specialized, They Were Able

question 187

Multiple Choice

When Adam Smith's ten pin workers specialized, they were able to increase output of pins in a day from 200 to 48,000. One reason for the increase in pin output was due to

• A) the time saved when workers do not need to shift from one task to another.
• B) the boredom the workers suffered when they stopped making a whole pin and only concentrated on one task such as painting the heads white.
• C) new machinery.
• D) the bonus they received when they produced more pins.

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Definitions:

Federal Deposit Insurance Corporation

A U.S. government agency that protects depositors in the event of a bank failure by insuring deposits up to a certain limit.

Money Supply

The total amount of money available in an economy at a specific time.

Tax Increases

Government-imposed hikes in taxes intended to raise additional revenue for public spending or to influence economic behavior.

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Measures implemented by governments to control the amount and type of goods and services that can be traded across borders, such as tariffs, quotas, and embargoes.