Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 1: Problem 10

Give the three reasons that explain why the division of labor increases an economy's level of production.

Short Answer

Expert verified
The division of labor increases an economy's level of production for three main reasons: 1) Increase in efficiency - as workers specialize in specific tasks, they become more proficient and skilled, leading to higher efficiency and output. 2) Time saving - specialization reduces the time spent on switching between tasks or learning multiple skills, allowing workers to focus on perfecting their assigned task and reduce overall production time. 3) Utilization of comparative advantage - by identifying their comparative advantage in producing specific goods and services, individuals and groups can specialize accordingly, leading to increased overall productivity and output in the economy.

Step by step solution

01

1. Increase in Efficiency

The division of labor allows workers to specialize in specific tasks. By focusing on one task rather than multiple tasks, workers can become more proficient and skilled at their assigned task. This increased skill level leads to an increase in efficiency, as workers can complete their tasks more quickly and with a higher success rate.
02

2. Time Saving

As a result of specializing in specific tasks and becoming more efficient, workers are able to save time during the production process. For example, if a worker only has to focus on one aspect of production, they do not need to spend time switching between tasks or learning multiple skills. This allows workers to dedicate more time to perfecting their own task, leading to an overall decrease in production time and an increase in output.
03

3. Utilization of Comparative Advantage

The division of labor allows for the effective use of comparative advantage in an economy. Comparative advantage is the concept that individuals or groups should produce goods and services in which they have a lower opportunity cost, allowing them to produce these goods and services more efficiently. Through the division of labor, individuals and groups can identify their comparative advantage and specialize in producing that specific product or service. This specialization allows for an increase in the overall productivity and output of the economy.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Why is it unfair or meaningless to criticize a theory as "unrealistic?"

Why do you think that most modern countries' economies are a mix of command and market types?

Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States?

A computer systems engineer could paint his house, but it makes more sense for him to hire a painter to do it. Explain why.

A consultant works for \(\$ 200\) per hour. She likes to eat vegetables, but is not very good at growing them. Why does it make more economic sense for her to spend her time at the consulting job and shop for her vegetables?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free