Specialization

When the production of a good or service is broken down into different steps with different workers performing each step, it is called division of labor.

• True

• False

When the production of a good or service is broken down into different steps with different workers performing each step, it is called ___________.

• division of goods

• division of labor

• division of skills

• division of steps

Germany specializes in the production of automobiles. Based on the information, which statement BEST describes Germany?

• Germany has no natural resources that other countries demand.

• Germany has a low gross domestic product and high unemployment.

• Germany sells automobiles to domestic consumers for very low prices.

• Germany can produce automobiles more efficiently than other countries.

What is specialization?

• Producing all goods that the country needs so that trade with other countries isn’t necessary

• Trying to avoid investing in capital goods because it’s too expensive

• Producing goods a country can make most easily so that they can trade for goods that they can’t produce locally

• Directly trading goods with another country without having to use money
  

Why is specialization so valuable to international trade today?

• Most countries only make one product really well.

• Specialization allows people to do a more efficient job at producing what they make best and trade for the things they need.

services that can be produced most efficiently and cost effectively

• standard living

• specialization

• benefits

• trade

Which of the following is an example of specialization in a modern economy?

• A country focusing on producing electronics

• A country producing all types of goods

• A country avoiding international trade

• A country with no specific industry focus

How does specialization benefit a country's economy?

• By increasing the variety of goods produced

• By reducing the need for trade

• By improving efficiency and productivity

• By decreasing the quality of goods

What is a potential downside of specialization for a country?

• Increased self-sufficiency

• Dependence on international trade

• Higher production costs

• Decreased efficiency

Which industry is most likely to benefit from specialization?

• Agriculture

• Technology

• Tourism

• All of the above