Specialization and exchange. - SS1 Commerce Past Questions and Answers - page 1
What is specialization?
Focusing on specific tasks or areas of expertise
Producing a wide range of goods or services
Trading surplus resources
What does specialization lead to?
Increased productivity and efficiency
Decreased trade opportunities
Lack of diversity in goods and services
What is exchange?
Producing a wide range of goods or services
Trading goods or services with others
Focusing on specific tasks or areas of expertise
What does exchange facilitate?
Specialization and division of labor
Increased self-sufficiency
Decreased economic growth
What is the purpose of exchange?
To increase costs and inefficiency
To limit competition between individuals or businesses
To obtain goods or services not produced directly
Name on benefit of specialization
Specialization leads to increased productivity and efficiency.
How does exchange encourage specialization?
Exchange facilitates the efficient allocation of resources and expands the variety of goods and services available in an economy. It encourages specialization by enabling individuals or businesses to focus on what they do best while benefiting from the expertise of others.