What is one advantage of specialization in terms of productivity?
Increased efficiency
What is one advantage of division of labor regarding worker skills?
Greater expertise
Specialization encourages firms to invest in specialized equipment and processes.
True
What is one advantage of division of labor related to worker productivity?
Greater output
How does specialization lead to economies of scale for firms?
Lower average costs
What is the benefit of specialization that leads to workers becoming more skilled and efficient in their tasks?
Increased productivity
What does specialization encourage firms to invest in to drive technological innovation?
Specialized equipment
How does division of labor increase productivity in firms?
Workers specialize in tasks
Specialization in division of labor reduces costs due to increased efficiency and less need for multi-skilled employees.
True
What is the definition of specialization in the context of economics?
Concentrating on specific goods
Specialization and division of labor both aim to improve efficiency, but specialization focuses on individual or firm expertise, while division of labor breaks down tasks.
True
What is the key advantage of specialization that allows workers to develop expertise and become more efficient at their tasks?
Increased productivity
What is the main goal of division of labor in a production process?
Increase efficiency
Match the concept with its definition:
Specialization ↔️ Concentrating on specific goods
Division of Labor ↔️ Dividing tasks among workers
Specialization encourages investment in specialized equipment and processes.
True
What is the main focus of specialization?
Expertise
What is the primary focus of division of labor?
Overall efficiency
Match the concept with its definition:
Specialization ↔️ Producing a specific range of goods
Division of Labor ↔️ Dividing production into separate tasks
What is one technological benefit of specialization?
Investment in specialized equipment
Specialization refers to the focus on producing a limited range of goods or services
Specialization helps address the economic problem of using scarce resources efficiently.
True
Increased productivity in specialization allows workers to develop expertise and become highly skilled at their specific tasks
Division of labor increases efficiency by allowing individuals to specialize in specific parts of production
Division of labor reduces production costs by decreasing the need for multi-skilled employees.
True
Workers who specialize in specific tasks become more skilled and efficient, leading to greater overall output
Firms achieve lower average costs by focusing on a limited range of products, which is called economies of scale.
A car manufacturer specializing in SUVs can streamline production and develop advanced technologies for this vehicle type.
True
Division of labor allows firms to break down large processes into smaller, more manageable steps, achieving economies of scale.
In a car manufacturing plant, what are some tasks workers might specialize in under division of labor?