Question

Specialization of labor contributes to increased economic output by I. creating optimal use of human resources by taking advantage of the different skills of each individual in the workforce II. encouraging each individual to perform as many different tasks as possible III. taking advantage of skill development as each worker becomes more efficient in performing the same task a) I only b) II only c) I and III only

Answer 1

c) I and III

Step-by-step explanation:

• The specialization of labor can lead to economies of scale as it allows for the increase in output. For example, works can perfect on a given one task that they mainly focus on and thus become more efficient in them.

• As higher the periodicity and efficacy of the job lower unit costs results to be higher profits, thus encourages investments in the specific capital or the economies of scale.

• Thus it splits the tasks into specialized frameworks and that increases productivity.