Multiple choice

Directions: Read the following passage/information and answer the question that follows.

The greater the division of labour in an economy, the greater the need for coordination. This is because increased division of labour entails a large number of specialised producers, which results in a greater burden on managers and, potentially, in a greater number of disruptions of supply and production. There is always more division of labour in market economies than in planned economies.

From the information available in the passage, we can definitely conclude that

  1. disruptions of supply and production are more frequent in planned economies than in market economies

  2. there are more specialised producers in planned economies than in market economies

  3. the need for coordination in market economies is greater than in planned economies

  4. a manager’s task is easier in a market economy than in a planned economy

  5. the market economies are more modern than the planned economies
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The greater the division of labour, the greater is the need for coordination. And since there is a greater division of labour in the market economies, the need for coordination will also be greater.

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