Question : 91) The famous economist who first described the division of : 1384123

 

91) The famous economist who first described the division of labour was

A) Karl Marx.

B) Milton Friedman.

C) David Ricardo.

D) John Maynard Keynes.

E) Adam Smith.

92) Which of the following statements about specialization and trade are correct?

A) They developed only in the twentieth century.

B) They exist only in capitalist economies.

C) They arose as humans changed from nomadic and self-sufficient food gatherers to settled food producers.

D) They developed only where government and political institutions were stable.

E) They occur only in the private sector.

93) If an economy exhibits the specialization of labour, we know that

A) a barter economy is more suitable.

B) most production is artisanal in nature.

C) each worker is self-sufficient.

D) job security is ensured.

E) different individuals are producing different products.

94) Which of the following statements best describes a barter system of exchange?

A) It involves the trading of goods directly for other goods.

B) It requires the use of money.

C) It does not involve the double coincidence of wants.

D) It developed late in history.

E) It is the most efficient form of exchange.

95) Specialization of labour led to greater efficiency in the allocation of resources because of

A) greater reliance on self-sufficiency.

B) the use of barter.

C) the principle of comparative advantage.

D) an increase in total work effort.

E) the opportunity cost of labour increased.

96) A greater specialization of labour leads to which of the following major results?

A) the overall output of the economy declines

B) there is an increased need for government to intervene in the marketplace

C) the circular flow of income contracts

D) there is a greater need for trade

E) each worker must become more self-sufficient

97) A farmer selling tomatoes and corn at a roadside, and a currency trader in Hong Kong, are each participating in

A) barter.

B) a market.

C) an involuntary transaction.

D) flexible manufacturing.

E) international trade.

98) Which of the following has most contributed to the globalization of the economy?

A) the decreased importance of agriculture

B) reductions in transportation and communication costs

C) the shift toward a market economy in China

D) tariffs and trade barriers

E) the decline in the relative importance of manufacturing

99) Which of the following results from the introduction of money for use in transactions?

A) exchange becomes easier and this promotes the specialization of labour

B) an increased use of barter

C) the specialization of labour becomes more difficult

D) self-sufficiency is assured

E) society is able to satisfy all wants

100) The barter system of exchange is inefficient because

A) “fair” values cannot be defined without the use of money.

B) bargaining power is unequal between rich and poor.

C) the double coincidence of wants may not exist.

D) markets do not exist.

E) exchange partners need to know each other.

 

 

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