ECONOMICS
DIVISION OF LABOR AND SPECIALIZATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ryan lied about what he was giving to Ty.
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Ty lied about what he was giving to Ryan.
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Baseball Cards are worth more than Pokemon Cards.
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Pokemon Cards are worth more than Baseball cards.
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Detailed explanation-1: -Specialization Leads to Economies of Scale As labor is divided amongst workers, workers are able to focus on a few or even one task. 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.
Detailed explanation-2: -Specialization can increase productivity and provide a comparative advantage for a firm or economy. Microeconomic specialization involves the individual actors and economic components, and macroeconomic specialization involves the broad advantage an economy holds in production.
Detailed explanation-3: -In layman’s terms, specialization means focusing on a specific job. When an individual specializes, they limit their focus to one specific activity. When a company specializes, it focuses on a narrow range of goods or services.
Detailed explanation-4: -How might the purchase decisions of consumers impact a market economy? By buying some products, but not others, consumers might determine what is produced. When consumers buy products, the price of the product might decrease in response. If firms increase the supply of a product, consumers might purchase more.