When productive activities are organized according to the principle of the division of labor
A) scarcity is eliminated.
B) we do not devote enough resources for capital investment.
C) total output increases due to the advantages of specialization.
D) an inefficient outcome results.

Question

Quizplus · Accepted Answer

The division of labor allows each worker to specialize in a particular task, which increases efficiency and productivity, leading to an increase in total output. Therefore, choice C is correct. A, B, and D are incorrect as the principle of the division of labor does not eliminate scarcity, capital investment is still necessary, and an inefficient outcome does not result if it is organized effectively.

When Productive Activities Are Organized According to the Principle of the Division