Unformatted text preview: a subset of resource
• Division of labor affords us the luxury of using
specialization and it serves the market system in that
people with skills best suited for certain activities
it allows us to employ differences in ability among
in the way they will be most productive.
• In addition, there are usually related gains in
productivity because practice makes perfect.
It also allows gains in specialization from fostering
learning by doing (we get better at what we do the
Stated differently, we continue to improve at the
things we do the most.
• Finally, division of labor enables us to use another
Specialization also saves another resource in that it
resource more efficiently. As labor improves
enables us to save time.
productivity, additional time becomes available for
alternative uses. Division of Labor Learning Objective 2-2 6 Chapter 2: The Market System and The Circular Flow
14 Geographic Specialization
Geographic specialization also serves market
systems in favorable ways in that it allows us to
use land in the most productive possible manner.
• Imagine how m...
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This note was uploaded on 09/10/2009 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.
- Spring '09