MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 5QAP
(a)
To determine
The current scenario of the effects of division of labor on productivity and on human capacity by Adam smith.
(b)
To determine
The policy implications.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Give the three reasons that explain why the division of labor increases an economy’s level of production.
"If the law of diminishing returns did not hold, we can produce all
the food the world needs in one small patch of land."
Do you agree, disagree, or agree in part? Think of land as the only
fixed factor and fertilizer as the only variable factor. How much
food could you grow in the patch of land if the marginal product
of fertilizer were constant regardless of the amount used per unit
of land?
What is the difference between Karl Max and Adam Smith in term of division of labour?
Chapter 2 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
Ch. 2.1 - Prob. 1QCh. 2.1 - Prob. 2QCh. 2.1 - Prob. 3QCh. 2.1 - Prob. 4QCh. 2.1 - Prob. 5QCh. 2.1 - Prob. 6QCh. 2.1 - Prob. 7QCh. 2.1 - Prob. 8QCh. 2.1 - Prob. 9QCh. 2.1 - Prob. 10Q
Ch. 2.A - Prob. 1QECh. 2.A - Prob. 2QECh. 2.A - Prob. 3QECh. 2.A - Prob. 4QECh. 2.A - Prob. 5QECh. 2.A - Prob. 6QECh. 2.A - Prob. 7QECh. 2.A - Prob. 8QECh. 2 - Prob. 1QECh. 2 - Prob. 2QECh. 2 - Prob. 3QECh. 2 - Prob. 4QECh. 2 - Prob. 5QECh. 2 - Prob. 6QECh. 2 - Prob. 7QECh. 2 - Prob. 8QECh. 2 - Prob. 9QECh. 2 - Prob. 10QECh. 2 - Prob. 11QECh. 2 - Prob. 12QECh. 2 - Prob. 1QAPCh. 2 - Prob. 2QAPCh. 2 - Prob. 3QAPCh. 2 - Prob. 4QAPCh. 2 - Prob. 5QAPCh. 2 - Prob. 1IPCh. 2 - Prob. 2IPCh. 2 - Prob. 3IPCh. 2 - Prob. 4IPCh. 2 - Prob. 5IPCh. 2 - Prob. 6IP
Knowledge Booster
Similar questions
- The formal study of economics began when Adam Smith (1723-1790) published his famous book The Wealth of Nations in 1776. In the first chapter of The Wealth of Nations, Smith introduces the idea of the division of labor. Define "division of labor" and give an example.arrow_forward2arrow_forwardSuppose that the marginal product of labor for a local bakery is 120 units per day and the price of labor is $10 per day. Instructions: Enter your answers as a whole number. a. What does the least-cost rule say that the ratio of the marginal product of capital to the price of capital should be? Book b. Now suppose that the marginal product of labor is 120 units per day, the price of labor is $10 per day, and the price of capital is $3 per day. What does the least-cost rule say that the marginal product of capital should be? Print Referencesarrow_forward
- The table below shows various values of labour (L), capital (K), and technology (T) for Economies A, B, and C. In each case, the aggregate production function takes the following form: Y = T x KL Economy A Economy B Economy C L. K LK I L K T on 100 50 100 50 100 50 2 110 50 110 55 110 55 4 120 50 2 120 60 120 60 130 50 130 65 2 130 65 8. 140 50 2. 140 70 140 70 10 150 50 150 75 150 75 12 TABLE 25-4 Refer to Table 25-4. The production function that applies to Economies A, B, and C displays Select one: O a. constant returns to scale. O b. diminishing marginal returns to capital. O c increasing returns to scale. O d. increasing marginal returns to capital. O e. Both C and D are correct. 6 2.arrow_forwardSuppose that the marginal product of labor for a local bakery is 84 units per day and the price of labor is $4 per day. Instructions: Enter your answers as a whole number. a. What does the least-cost rule say that the ratio of the marginal product of capital to the price of capital should be? b. Now suppose that the marginal product of labor is 84 units per day, the price of labor is $4 per day, and the price of capital is $3 per day. What does the least-cost rule say that the marginal product of capital should be?arrow_forwardIn your "toast" production function, you used your labor and a toaster as capital. Keeping capital constant, i.e., with only one toaster if you keep adding the labor, i.e., bring your friends to help you with making toasts, which of the following might happen? Group of answer choices Marginal returns to labor will be a constant. Marginal returns to labor will keep decreasing and, after a point, it will become negative. Marginal returns to labor will keep increasing. Marginal returns to labor will keep increasing and then be a constant.arrow_forward
- A country can produce two goods, X and Y. The maximum possible output of X is 200 and the maximum possible output of Y is 300. If the marginal product of labor in X is 4, what is the marginal product of labor in Y?arrow_forwardQuestion 1: Consider the following production function that depends only on labor:Q = 81¹/2 1. Write a combination of input and output that are technically efficient. In other words, for what level of L and Q, is the technology efficient? 2. Write a combination of input and output that are technically inefficient. In other words, for what level of L and Q, is the technology inefficient? 3. Write a combination of input and output that are technically unattainable. In other words, for what level of I and Q, is the technology unattainable?arrow_forwardParts b,c,d,earrow_forward
- In the United States, where Internet services are cheap, the ratio of capital to labor used is higher than that of capital used in accounting services. But in other coun- tries, where Internet services are expensive and labor is cheap, it is common to use less capital and more labor than in the United States. Can we still say that Internet services are capital intensive compared to accounting services? Why or why not?arrow_forwardSome economists believe that the US. economy as a whole can be modeled with the following production function, called the Cobb-Douglas production function: Y = AK¹/32/3 where Y is the amount of output K is the amount of capital, L is the amount of labor, and A is a parameter that measures the state of technology. For this production function, the marginal product of labor is MPL = (2/3) A(K/L)¹/³. Suppose that the price of output P is 2, A is 3, K is 1,000,000, and L is 1/100. The labor market is competitive, so labor is paid the value of its marginal product. a. Calculate the amount of output produced Y and the dollar value of output PY. b. Calculate the wage W and the real wage W/P. (Note: The wage is labor compensation measured in dollars, whereas the real wage is labor compensation measured in units of output)arrow_forwardThe formal study of economics began when Adam Smith (1723-1790) published his famous book The Wealth of Nations in 1776. In the first chapter of The Wealth of Nations, Smith introduces the idea of the division of labor. Define "division of labor" and illustrate with an example.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning