ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Specialization is the practice of an individual or business focusing their productive capacity (skills, resources, etc.) on a limited set of goods and services. Specialization is important because it greatly improves productivity – the ratio of inputs to outputs. The typical example is the assembly line.

Detailed explanation-2: -What Is Economic Specialization? Specialization is the process wherein a company or individual decides to focus their labor on a specific type of production. In layman’s terms, specialization means focusing on a specific job. When an individual specializes, they limit their focus to one specific activity.

Detailed explanation-3: -Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency.

Detailed explanation-4: -Specialization Leads to Economies of Scale The more they focus on one task, the more efficient they become at this task, which means that less time and less money is involved in producing a good. Or put another way, the same time and the same money allows for the production of more goods.