Division of Labor

question 376

Multiple Choice

Division of labor

• A) increases the amount of capital in the economy.
• B) leads to an increase in the amount of output in the economy.
• C) makes economic goods possible.
• D) is not possible for service goods.

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Definitions:

Accounts Payable

Liabilities of a business that represent its obligations to pay off a short-term debt to its creditors or suppliers.

Inventory

The overall quantity of products and resources that a business possesses, which are either for sale or to be utilized in manufacturing.

Perpetual Inventory

A continuous tracking system for inventory that records the sale or purchase of inventory in real-time through the use of computerized systems.

Accounts Payable

Debts of a company reflecting the money owed to lenders or suppliers for products and services acquired on credit.