Which of the following statements is TRUE?
I. Compared with a modern economy, the division of knowledge is greater in a primitive economy because every family is self-sufficient: growing their own food, making their own clothes, and constructing their own shelter.
II. Nobody understands the entire process of producing even the simplest products, like a lead pencil, in a modern economy.
III. The collapse of communism and the opening of the Chinese economy to the rest of the world have increased the division of knowledge, leading to increased world output.
A) I only
B) III only
C) II and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

In a modern economy, the division of knowledge is greater because tasks are specialized, unlike in a primitive economy where families are self-sufficient. No single person understands the entire production process of even simple products due to this specialization. The opening of economies like China's has increased the division of knowledge and world output.

Which of the Following Statements Is TRUE