Question

Which of the following are among the reasons offered by Adam Smith for why specialization results in higher levels of output?
A. Specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage.
B. Specialization allows businesses to take advantage of economies of scale.
C. Specialization allows workers to experiment with different tasks to see which responsibilities make them happiest at work.
D. Workers who specialize in certain tasks forgo an opportunity to learn how to do new tasks efficiently.

Answer 1

Answer:

A. Specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage.

B. Specialization allows businesses to take advantage of economies of scale.

Explanation:

Specialization refers to a situation where an individual or group of individuals concentrate on a particular aspect or field. Workers can focus on those aspects of the production process where they have the necessary skills. Similarly, if an organization specializes in producing a particular product, the organization will be able to obtain benefits associated with production on a large scale. Therefore options A and B are correct.

Option C is incorrect since workers will focus on a particular task. Option D is a disadvantage of specialization and is therefore incorrect.