- Divides production of goods into smaller parts
- Increased production due to specialization
- Wealthier economies tend to have a high rate of specialization, larger institutions produce at a larger rate of return then smaller firms
- We go to work and use money to buy necessities,
- Most among us could not create their own food.
- We, however, don’t worry if our bread will be in the store tomorrow.
Larger cities have a higher degree of specialization
- Even for semi-parts, take a car for example,
- Parts are made all over the world and come together to make a car
- A smaller city, however, will leave most neccessitive work to a greater percent of an already small population.
Dividing the labor
- Set using value and scarcity, with both a positive the greater the division
- If everything went into a storehouse and whatever you want you take, and only that which gets put in gets taken out
- Working on the honor system, there may be some who don’t put anything in but take things out.
- It also eliminates the idea of value and there would be no account for supply and demand.