Through free trade, countries specialize in the goods for which they have a comparative advantage and trade for those in which they do not. Specialization allows a country to divide labor among the various production segments, which results in higher productivity and greater economic growth for the involved countries.
What Are the Economic Impacts of Specialization?
Specialization, along with the complementary concept of the division of labor, occurs when the innate inequalities of human productive output are intensified along different skills. An individual becomes economically specialized when he focuses his productive efforts on an increasingly narrow range of tasks. The most obvious economic impact of specialization can be seen in the tendency for individuals to choose different vocations that are more in line with their interests, skills, opportunities, and education.
Division of labor:
The division of labor is the separation of the tasks in any economic system or organisation so that participants may specialize (specialization). Individuals, organizations, and nations are endowed with or acquire specialized capabilities and either form combinations or trade to take advantage of the capabilities of others in addition to their own. Specialized capabilities may include equipment or natural resources as well as skills and training and combinations of such assets acting together are often important. For example, an individual may specialize by acquiring tools and the skills to use them effectively just as an organization may specialize by acquiring specialized equipment and hiring or training skilled operators. The division of labor is the motive for trade and the source of economic interdependence.
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The oldest McDonald's restaurant<span> still open is a drive-up hamburger </span><span>in </span>Downey, California<span>. It was the second ever </span>McDonald's<span> restaurant and opened on August 18, 1953.</span>
Answer and Explanation:
The computation is shown below;
1.
Total hours for job A - 500
= Direct labor ÷direct labor wage rate
= $150 ÷ $15
= 10
Total over head cost = overhead cost per labor hours × no. of labor hours
= $20 × 10
= $200
total manufacturing cost = Direct materials cost + Direct labor cost + Total over head cost
= $280 + $150 + $200
= $630
2.
Cost assigned to each unit
= total manufacturing cost ÷ number of units
= $630 ÷ 70
= $9
<span>The natural rate of unemployment will drop in this instance. By increasing spending and/or decreasing taxes, aggregate demand is boosted, leading to more people being employed to meet the demand. This moves the natural rate of employment out to a greater level than previously experienced.</span>
