1. Specialization and Voluntary Trade
Becoming better and more efficient

2. 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

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

4. Voluntary Trade

5. 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

6. Examples of voluntary trade