Which of the following statements is true? I. Compared to a modern economy, the division of knowledge was greater in a primitive economy because every family grew its own food, made their own clothing, and constructed their own shelter. II. Nobody understands the entire process of producing even the simplest of products in a modern economy, like a lead pencil. III. The collapse of communism and the opening of the Chinese economy to the rest of the world have increased the division of knowledge, leading to increased world output.
A) I only
B) III only
C) II and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

Statement I is partially true. Compared to a modern economy, the division of knowledge was smaller in a primitive economy because every family was self-sufficient and had to produce everything by themselves, so they had a limited set of skills and knowledge. Statement II is true. In a modern economy, the production process is highly specialized, and nobody understands the entire process of producing even the simplest product. Statement III is partially true. The collapse of communism in some countries and the opening of their economies to the rest of the world have increased the division of knowledge, leading to increased world output. However, this statement cannot be applied to China only, as it is also true for other countries that have opened up their economies.

Which of the Following Statements Is True? I