Adam Smith Said, "It Is the Maxim of Every Prudent

question 15

Multiple Choice

Adam Smith said, "It is the maxim of every prudent master of a family never to attempt to make at home what it will cost him more to make than to buy. The tailor does not attempt to make his own shoes, but buys them of the shoemaker. The shoemaker does not attempt to make his own clothes, but employs a tailor." Which of the following concepts best illustrates Smith's intent with this statement?

• A) comparative advantage
• B) incentives matter
• C) scarcity
• D) production possibilities frontier

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Definitions:

Transcription

The process of copying a segment of DNA into RNA, a crucial step in gene expression.

Ribosomes

Cellular structures where protein synthesis occurs, translating genetic information into proteins.

Synthesizes

The process of combining simpler substances chemically to form more complex substances.

Messenger RNA

A type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.