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.

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Net Energy Ratio

A measure comparing the amount of energy available from a resource to the amount of energy used to obtain that resource.