1. 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 ?

2. What are some more examples of division of labor?

3. Division of Labor

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

5. Specialization How do you think specialization increases efficiency and productivity?

6. 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

7. 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

8. Examples of specialization Doctors – cardiologists, dermatologists, dentists, podiatrists, rhinologists

9. 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: –RestaurantMovie Courts

10. 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, NON- FRAUDULENT EXCHANGE

11. How does each side gain in these potential transactions? LAWYER

12. How does specialization increase efficiency and productivity?