#1
Which economist is credited with popularizing the concept of specialization and division of labor?
Adam Smith
ExplanationAdam Smith is credited with popularizing the concept of specialization and division of labor in his influential work 'The Wealth of Nations.'
#2
In economic terms, what does the principle of specialization refer to?
Focusing on producing a single good or service
ExplanationThe principle of specialization in economic terms refers to focusing on producing a single good or service to achieve efficiency.
#3
Which of the following is NOT a benefit of specialization and division of labor?
Reduced need for trade
ExplanationReduced need for trade is NOT a benefit of specialization and division of labor; instead, it increases the need for trade by promoting efficiency.
#4
What is the main difference between specialization and division of labor?
Specialization refers to individuals focusing on specific tasks, while division of labor refers to the allocation of tasks among different workers or entities.
ExplanationSpecialization focuses on individuals, while division of labor involves allocating tasks among different workers or entities.
#5
In which economic system are specialization and division of labor most commonly observed?
Capitalism
ExplanationSpecialization and division of labor are most commonly observed in the economic system of capitalism.
#6
How does specialization contribute to overall economic growth?
By increasing the efficiency of resource allocation
ExplanationSpecialization contributes to overall economic growth by increasing the efficiency of allocating resources.
#7
What concept is closely related to the division of labor and refers to the ability of individuals, companies, or countries to produce a particular good or service more efficiently than others?
Comparative advantage
ExplanationComparative advantage is closely related to the division of labor and involves producing a good or service more efficiently than others.
#8
Which industry is often cited as an example of extreme specialization and division of labor?
Automobile manufacturing
ExplanationAutomobile manufacturing is often cited as an example of extreme specialization and division of labor, with various tasks performed by specialized workers.
#9
Which of the following statements best describes the relationship between specialization and economic interdependence?
Specialization increases economic interdependence by encouraging countries to rely on each other for goods and services.
ExplanationSpecialization increases economic interdependence by fostering reliance on each other for goods and services.
#10
What potential disadvantage of specialization and division of labor should be considered from an economic perspective?
Overdependence on specific industries or skills
ExplanationA potential disadvantage is overdependence on specific industries or skills, which poses a risk from an economic perspective.
#11
How does division of labor relate to economies of scale?
Division of labor increases economies of scale by lowering average costs.
ExplanationDivision of labor increases economies of scale by reducing average costs.