The division of labor
a. allows more people to be employed
b. allows tasks to be performed more efficiently
c. makes people happier on the job
d. means that less management is required
e. means that less equipment will be used
QUESTION 2Which of the following provide the best evidence of specialization?
a. a firm that produces a line of related products, such as eight kinds of breakfast cereal
b. an architect who is willing to practice in only one geographic area
c. a physician that practices in a specialty area such as cardiology or orthopedic surgery
d. a family that eats at Wendy's every Thursday night
e. a retailer that sells goods but provides no services
QUESTION 3Division of labor allows people to do tasks for which they have greater natural ability.
a. True
b. False
QUESTION 4A medium of exchange must be
a. approved by the government
b. socially acceptable in exchange for goods and services
c. easy to reproduce
d. used to eliminate specialization and the division of labor
e. used when a system of barter exists
QUESTION 5Barter is
a. illegal in the United States
b. an efficient system of exchange
c. most useful when there is much specialization and international trade
d. only possible if money is used as a medium of exchange
e. the direct exchange of goods, without the use of money
QUESTION 6Money facilitates trade because
a. it eliminates the need for specialization
b. it prevents people from taking advantage of each other
c. it serves as a medium of exchange
d. division of labor allows money to be produced at a lower cost
e. people do not benefit from barter unless money is used
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