Question

A society in which the producers in the economy specialize will have a greater production potential than a society without specialization. List and explain the three things that specialization does to increase production.

@jim_thompson5910 I don't get where to start :(

Answer 1

What is the core idea in econ?

Answer 2

ermm would it be to be able to produce enough materials to support the people but doing so while using the least amount of resources? :/

Answer 3

it's the idea that people's wants or desires are practically infinite (some would argue otherwise though)

while at the same time, resources are limited or scarce

Answer 4

scarce doesn't mean there isn't enough to go around

scarcity in econ means there isn't infinite amount of it

Answer 5

ahh there we go haha i should've known scarcity played a role!

Answer 6

and yes:)

Answer 7

three big resources are: land, labor, capital (aka money)

time is also a big resource

Answer 8

okay:D

Answer 9

if you are all over the place making all sorts of products, then you aren't focusing your attention and aren't as efficient

Answer 10

but if you focus on one product and become very efficient at producing it, then you're a lot better off

Answer 11

since you can trade for stuff you don't have (giving what you have to others who want it)

Answer 12

oh like the trade-offs?

Answer 13

of course you don't have to produce ONE thing

just a small set of things

Answer 14

sorta

Answer 15

okay:)

Answer 16

so would the 3 big resources be the things that specialization does to increase production? or are those different?

Answer 17

imagine you had a piece of land that is 1 square mile (1 mile by 1 mile)

Answer 18

you can only fit so much on that land

Answer 19

imagining :)

Answer 20

if you try to do too much, then you're spreading your resources (land) too thin

Answer 21

also, trying to keep track of it all consumes time

Answer 22

in addition, you need knowledgeable people to make these products (human capital)

Answer 23

if you focus your energy on a certain set of products, then you're better off since you can devote more land, time, human knowhow, etc to these products

kinda like quality over quantity

Answer 24

yeah it's like an assembly line. If you divide up the work and have each worker focus on a specific job/task, then things are very efficient if they all work together

Answer 25

okay yay! :D what would the next two things be? :O

Answer 26

well I'm not sure, but I would think that specialization encourages and promotes trade

example: japan specializes in making computers very well while the US specializes in making airplanes very well. The two countries could make their own products, but if they specialize, then things are more efficient. Trade will have to happen so both countries get computers and airplanes at the same time. Having more trade improves relations since you normally don't trade with your enemy (unless there are some rare circumstances).

Answer 27

and because you have global trade, this opens up the market more which leads to more consumers ---> higher profit

Answer 28

ahh okay, so kind of like the wealth of nations with the division of labor?

or is that something different?

like would this be considered global trade and market for higher profit?

Answer 29

yes exactly

Answer 30

adam smith mentions this

Answer 31

okay awesome :)

so would these be the 3 things?

1) productivity which is focusing energy on a certain set of products because then you can devote more resources, time, energy, and skills
2)wealth of nations with the division of labor for higher efficiency
3) global trade that opens up markets for more consumers and higher profit

? :/

Answer 32

that sounds good I think, but I'd get a second opinion

Answer 33

okay, thank you!! :D