ECON 103 GMU exam 1 Boudreaux Questions With 100% Correct Answers!!

Which of the following is among the reasons identified by Adam smith for why the division of labor increases an economy's total output? a) specialized workers are happier than are non specialized workers b) specialized workers each work on tasks for which they each have a comparative advantage c)specialized workers follow instructions better than do non specialized workers d) specialization of workers is more likely to encourage the development of machinery to perform specialized tasks e) the principle of comparative advantage d) specialization of workers is more likely to encourage the development of machinery to perform specialized tasks The name of robots, buildings and other goods that are built only because these goods are useful in the production of other goods or services is a) raw materials b) natural resources c) consumption goods d) capital goods e) none of the above d) capital goods Let X and Y be consumption goods and let K be capital good, and assume that these are the only three goods produced in the economy. True or false: To produce today more X requires that less than Y or K today be produced, but to produce more K today does not require that less X or less Y be produced. a) true