Question

The Power of Trade and Comparative Advantage Ove Sunday 020 19 at 1145PM Average 21 Which of the tollowing are examples of specialization? Check all that apply Potro a fashion designer. He 'we..oomestk worver to dean his apartment two awee" somat he Jim and Rosa each spent half the day wasning cars and hall the day mowing lawns, In between washing car and mowing lawns, they each must spend an hour putting away the car-washing eqopment and changing clothes before mowing lwns Chares writes well, and kevin is an expert on health, therefore, Charles wnites novels, and Kevin is a 5 which of the tolowing are

Answer 1

(1) Examples of specialization are:

- Patrick hires a domestic worker (so that he himself can focus on the work in which he has comparative advantage)

- Charles and Kevin (since they specialize on basis of their skills)

(2) Specialization allows for increase in productivity, which is primary determinant of trade.

(3) Necessary condition for specialization is:

- Individuals focus only on the task they prefer.