ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a business makes many different kinds of goods
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a country buys all the goods it needs from another country and does not produce any goods themselves
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a factory focuses on producing one or two goods and leaves production of other goods to other factories
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a violin maker makes a violin from himself by cutting down a tree for wood
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Detailed explanation-1: -Specialization involves focusing on a specific skill, activity, or production process, such as a South American company harvesting bananas, to become the leader or expert.
Detailed explanation-2: -Specialization happens when people and businesses concentrate on producing what they are good at, or even better, the best at. For example, Starbucks specializes in serving standardized coffee while KFC specializes in fried chicken and chicken hamburgers.
Detailed explanation-3: -A server in a restaurant is an example of specialization of labor. It would be unusual for a server to go into the kitchen and prepare food or work with the valets to park customers’ cars. Because their labor is specialized, servers can focus on a set number of responsibilities.
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.