O Levels Economics (2281)•2281/12/M/J/19

Explanation
Specialization Enhances Productivity Through Task Focus
Steps:
- Define specialization: Workers focus on specific tasks instead of switching between multiple jobs.
- Link to productivity: Focusing reduces wasted time on transitions, allowing more output per worker.
- Evaluate choices: Identify which option directly explains time savings from specialization.
- Select best: Option C matches the core benefit of reduced task-switching.
Why C is correct:
- Specialization follows Adam Smith's division of labor principle, where workers gain efficiency by repeating one task, saving time on movements and setups, thus increasing output per hour.
Why the others are wrong:
- A: Specialization lowers average costs through efficiency, not increases them.
- B: Specialization often reduces turnover by building skills and job satisfaction.
- D: Focused tasks can increase interest via mastery, not cause loss of interest.
Final answer: C
Topic: Firms and production
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