· Which of the following are examples of specialization? Check all that apply.
· Patrick is a historian. He hires a domestic worker to clean his apartment twice a week so that he can concentrate on doing research.
· Charles is good at explaining things clearly, and Kevin is an expert on taxes; therefore, Charles teaches, and Kevin prepares people’s tax returns.
· Jim and Rosa each spend half the day walking dogs and half the day baby-sitting. In between walking dogs and baby-sitting, they each must spend an hour showering, changing, and driving to new locations to begin baby-sitting.
· Which of the following are necessary conditions for specialization to occur? Check all that apply.
· A system of exchange must be in place.
· Individuals focus only on the tasks they prefer.
· Everyone must be equally productive at the same task.
Becky is one of the top race car drivers in the world. Becky has two kids age 12 and 14.
True or False: The principles of comparative advantage and specialization imply that she can benefit by hiring someone else to drive her kids to school, even if the person she hires is not as skilled a driver.