Multiple Choice
In the context of factors of production, which channel member is primarily responsible for making the product?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which situation best illustrates the concept of division of labor?
A
A factory where each worker specializes in assembling a specific part of a car.
B
A group of friends who all perform the same task when volunteering at a shelter.
C
A farmer who grows, harvests, and sells crops all by himself.
D
A small bakery where one person bakes, decorates, and sells cakes.
Verified step by step guidance1
Understand the concept of division of labor: it refers to the process where the production of a good or service is broken down into different tasks, and each worker specializes in one specific task to increase efficiency.
Analyze each option to see if workers are specializing in different tasks or performing the same tasks:
Option 1 describes a factory where each worker specializes in assembling a specific part of a car, which means tasks are divided among workers—this matches the division of labor concept.
Option 2 describes a group of friends all performing the same task, which means no specialization or division of labor is occurring.
Option 3 describes a farmer doing all tasks alone, so there is no division of labor since one person handles all parts of production.
Option 4 describes one person doing all tasks in a bakery, so again, no division of labor is present because there is no task specialization.
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