Division of Labor Dividing a huge task into

Division of Labor • Dividing a huge task into several smaller tasks • Increases efficiency/productivity • Which is quicker… 1 person moving 30 desks across the room, or 30 people each moving 1 desk?

What are some more examples of division of labor?

Division of Labor

Specialization • Doing one task really well because it is done over and over

Specialization • How do you think specialization increases efficiency and productivity?

Specialization • Specialization: people/companies learn and practice a small set of skills then work or trade with others with different skills to produce something – Improves efficiency/productivity – The assembly line idea

Why does specialization work? • Skills are developed at a deeper level – people become “experts” in their field • Costs are cut because time needed to produce is decreased • Training can be more focused and in-depth Remember: People, Stores & industries specialize

Examples of specialization • Doctors – cardiologists, dermatologists, dentists, podiatrists, rhinologists

Examples of specialization • Teachers – grade level, subject, coaches • Stores at the mall – food court, hats, electronics, shoes, clothes • Write two examples of specialization in each of these areas: – Restaurant Movie Courts

How does specialization relate to voluntary exchange? • Because we specialize, we rely on others for the things we don’t produce (CAUSE AND EFFECT!) • In an exchange, BOTH sides are looking to gain something • BOTH sides gain in VOLUNTARY, NONFRAUDULENT EXCHANGE

How does each side gain in these potential transactions? LAWYER

How does specialization increase efficiency and productivity?