Division of labor increases the output of society by
A) eliminating scarcity.
B) reducing the choices people have to make to a more manageable number.
C) ensuring that people are happier in performing their work.
D) allowing resources to specialize in the tasks for which they have a comparative advantage.

Question

Quizplus · Accepted Answer

Division of labor allows resources to specialize in the tasks for which they have a comparative advantage. This means that each resource focuses on doing what they are best at, which allows for more efficient production and higher overall output for society. This leads to economic growth and development. Choices A, B, and C are not correct because division of labor does not eliminate scarcity, reduce the number of choices people have to make, or necessarily increase happiness in performing work.

Division of Labor Increases the Output of Society by