Specialization and Voluntary Trade Becoming better and more efficient

Specialization What is it? Why do we do it? How do we do it? Focusing on one task or area of skill when producing something Why do we do it? Makes us more efficient. Boosts productivity We are better at what we do, so we produce better items and waste less resources. How do we do it? Division of labor: divide up tasks between workers Assembly lines Restaurants – one worker does a particular job

As we specialize we become experts at our job. This means we can get paid more if people want to hire our skill!

Voluntary Trade http://www.econedlink.org/tool/196/Trade-Exchange-Interdependence-Video-Quiz

Voluntary Exchange Occurs when two countries, individuals, or businesses will trade one item for another Assumes that the value of the item received is greater than the value of the item given up Each individual must feel like they are benefitting or they will not trade

Examples of voluntary trade