Division of labor is a subset of resource division of

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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. laborers strategically. • 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 most). 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 Chapter 2 13 alternative uses. Division of Labor Learning Objective 2-2 6 Chapter 2: The Market System and The Circular Flow Slide 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.

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