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# The greater the division oflabor in an economy, the greater

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The greater the division oflabor in an economy, the greater [#permalink]  16 Feb 2019, 11:24
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The greater the division of labor in an economy, the greater the need for coordination. This is because increased division of labor entails a larger number of specialized 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 labor in market economies than in planned economies.

If all of the statements above are true, then which of the following must also be true?

(A) Disruptions' of supply and production are more frequent in planned economies than in market economies.
(B) There are more specialized producers in planned economies than in market economies.
(C) The need for coordination in market economies is greater than in planned economies.
(D) A manager's task is easier in a market economy than in a planned economy.
(E) Division of labor functions more effectively in market economies than in planned economies.
[Reveal] Spoiler: OA

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Re: The greater the division oflabor in an economy, the greater [#permalink]  22 Feb 2019, 21:27
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(A) We are told that a greater division of labor potentially results in a greater number of disruptions of supply and production. Since market economies have more division of labor, we'd expect more frequent disruptions in market economies, not in planned economies.

(B) Again, more division of labor = more specialized producers. Since market economies have more division of labor, we'd expect more specialized producers in market economies, not in planned economies.

(C) Market economies have more division of labor, and more division of labor = more need for coordination. So this choice is correct!

(D) More division of labor = greater burden on managers. Market economies have more division of labor, and so have greater burden on managers. Their job is not easier!

(E) We are told that there is more division of labor in market economies, but we aren't told anything at all about the overall effectiveness of that division of labor in either economic system.
Re: The greater the division oflabor in an economy, the greater   [#permalink] 22 Feb 2019, 21:27
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