• Which of the following are examples of specialization?Check all that apply.

A. Jonas and Deborah each spend half the day washing cars and half the day mowing lawns. In between washing cars and mowing lawns, they each must spend an hour putting away the car-washing equipment and changing clothes before mowing lawns.

B. Alyssa understands people, and Karen is an expert on sports; therefore, Alyssa is a therapist, and Karen is a sports commentator.

C. Robert is a historian. He hires a domestic worker to clean his apartment twice a week so that he can concentrate on doing research.

• Which of the following are necessary conditions for specialization to occur?Check all that apply.

A. Individuals focus only on the tasks they prefer.

B. A system of exchange must be in place.

C. Everyone must be equally productive at the same task.

• Eric is a famous celebrity chef on a reality television show and is one of the best chefs in the world.

True or False: The principles of comparative advantage and specialization imply that Eric can benefit by hiring someone else to cook his meals, even if the person he hires is a worse chef.

A. True

B. False