Question 1
What is meant by average cost?
A.
Labour divided so each worker performs one task in production. B.
Smith's famous book on markets and specialisation. C.
Total cost divided by total output. D.
When a worker, firm or country focuses on one good/service.
Question 2
Division of labour increases:
A.
Unemployment always B.
Productivity C.
Opportunity cost only D.
Market failure
Question 3
What is meant by functions of money?
A.
Medium of exchange, store of value, unit of account, standard for deferred payment. B.
Specialisation requires trade between specialists. C.
Workers become skilled at repeated tasks, reducing waste. D.
Total cost divided by total output.
Question 4
What is meant by adam smith?
A.
Classical economist; argued markets work via the invisible hand. B.
Labour divided so each worker performs one task in production. C.
Total cost divided by total output. D.
Medium of exchange, store of value, unit of account, standard for deferred payment.
Question 5
What is meant by pin factory?
A.
Specialisation requires trade between specialists. B.
Total cost divided by total output. C.
Workers become skilled at repeated tasks, reducing waste. D.
Smith's example — division of labour raised output dramatically.
Question 6
What is meant by exchange?
A.
Medium of exchange, store of value, unit of account, standard for deferred payment. B.
Specialisation requires trade between specialists. C.
When a worker, firm or country focuses on one good/service. D.
Smith's famous book on markets and specialisation.
Question 7
What is meant by specialisation?
A.
Labour divided so each worker performs one task in production. B.
Classical economist; argued markets work via the invisible hand. C.
Specialisation requires trade between specialists. D.
When a worker, firm or country focuses on one good/service.
Question 8
What is meant by efficiency?
A.
Workers become skilled at repeated tasks, reducing waste. B.
Output per unit of input in a given time period. C.
Smith's famous book on markets and specialisation. D.
Smith's example — division of labour raised output dramatically.
Question 9
What is meant by division of labour?
A.
Output per unit of input in a given time period. B.
Workers become skilled at repeated tasks, reducing waste. C.
Smith's famous book on markets and specialisation. D.
Labour divided so each worker performs one task in production.
Question 10
Adam Smith is associated with:
A.
Only monetary policy B.
Specialisation and free markets C.
Only taxation D.
Command economies
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