Explain how money encourages specialization, and how specialization improves everyone’s living standard.

Expert Solution

Specialization refers to the method used for production whereby a firm focuses on production of goods for achieving certain degree of efficiency. Money increase competition and specialization. Thereby specialization helps to find out who is very efficient in the operations. It is also a standard on which people usually tries to use whatever possible for achieving the personalized goals. In the case of a industry, the firms which offers the products in very cheap price will get more customers. The whole market will be under that particular firm. Money can be used to compare firms. Money is a medium which can bee used to increase thee import as well as exports of the country.

Specialization increase the standard of living. The each and every individual in the society who specializes in each areas will innovate many new hings. Specialization have greater impact in improving overall standard of living. Because people who specialo9izae in the field of new technologies and also in development off technologies it ultimately i8ncrease the overall productivity. It is also beneficial for small firms as well as owners who is likely to increase the production. It is very essential for large a firm because it allows workers to perform efficiently though a benchmark is set already.

Rahul Sunny answered 2 years ago

How does money enable specialization and exchange to occur?

Please explain how CAHPS improves health care?

Explain how an increase in the savings rate would affect a country’s present standard of living,...

Explain how an increase in the savings rate would affect a country’s present standard of living, and the future standard of living. Would an increase in the savings rate permanently or only temporarily affect the growth rate? Explain. Note: (Please answer all parts, it's the same question. NO Handwriting please, I have difficulties understanding the handwritings, unfortunately.)

How would living standards differentriate Sarah's living standard while living with Rosie compared to that expected...

How would living standards differentriate Sarah's living standard while living with Rosie compared to that expected when she will be living with Michelle Sarah and Rosies income is £14,500 x 2 + 1789 = 30,789 Sarah and Michelle income is 12 x 2140 = 25680 + 14,500 = 40,180 how would the two wages differentiate with living standards?

Explain the meaning of the American standard of living during the 1950

a) does USA deficit play a role in people's standard of living? Explain why b) How...

a) does USA deficit play a role in people's standard of living? Explain why b) How is the "assymetric information & medical ethics" contributing to the healthcare cost?

c. The standard of living in China is higher than the standard of living in Belgium...

c. The standard of living in China is higher than the standard of living in Belgium as the size of China’s real GDP in 2018 (using 2010 constant prices) was USD10,800,568.39 million compared to Belgium’s USD538,738.79 million (figures from the World Development Index Database). Do you agree or disagree with this statement? Refer to the UN Human Development Index to Justify your answer.

The standard of living in Argentina is higher than the standard of living in Luxembourg purely...

The standard of living in Argentina is higher than the standard of living in Luxembourg purely because the size of Argentina’s real GDP in 2018 (using 2010 constant prices) was USD446,880.91 million as opposed to Luxembourg’s USD67,301.21 million (figures from the World Development Index Database). Do you agree or disagree with this statement? Refer to the UN Human Development Index to Justify your answer.

Outline and explain the critique of GDP as a measure of a nation’s standard of living.

How can a nation increase its standard of living? Begin by defining the concept of standard...

How can a nation increase its standard of living? Begin by defining the concept of standard of living. Be sure to include and example, with your explanation.

Question