Submitted By
Zephyr R. Moten
On July 2 5, 1975
for
Consumer Education
TABLE OF CONTENTS
Section I.
Introduction
Section II.
Objectives
Section III.
Outline
Section IV.
Unit Content
Section V.
Questions Keyed to Specific
Objectives
Section VI.
Summary
Section VII.
Bibliography
SPECIALIZATION AND ITS MANY ASPECTS
Introduction
The purpose of this project is to present the various aspects of one economic( concept
"specialization". It is hoped that by doing so the individual will, be stimulated to exercise
his "thinking process" to its full potential. It is not the intent of this project to simply impart
knowledge nor try to force the individual, to have conformity of thought but rather to create a
positive effect .whereby the individual is led to make wise decisions for himself in our
society.
America is a society dedicated to the development of the full potential of the individual.
Given the freedoms provided in our society-and by universal education, individuals are
confronted. with he opportunity for fulfilling their potentials. Freedom makes individual
choice-making possible but wise choices require knowledge and thought. The advancement
of the society depends on a citizenry who can handle problem-solving with skill and who can
make rational choices.
OBJECTIVES
1. Knows common terms
1.1 Defines specialization in own words
1.2 Identifies the meaning of "Consumer Education" when in context
1.3 Selects terms that are similar in meaning
1.4 States the meaning of interdependence
2. Knows specific facts
2.1. Identifies the four resources
2.2 Matches uniforms with appropriate careers
2.3 Outlines the "Real Flow"
3. Knows basic concepts
3.1 Defines consumer and producer
3.2 States role of consumer and producer
4. Understands facts
4.1 Gives examples of specialists
4.2 Groups lists according to occupations
5. Estimates future consequences implied by knowledge learned
5.1 Infers positive and negative aspects of specialization
5.2 Summarizes the value of "Consumer Education"
5.3 Predicts the outcome of poor decision-making
6. Analyzes the need for specialization in our society
6.1 Categorizes specialists
6.2 Explains the reasons for different wages in specialization
7. Judges the value of resources
7.1 Describes natural resources
7.2 Explains the differences between the resources
7.3 Discriminates between wise and unwise deals ion-making in any given situation
8. Recognizes the need for both producers and consumers in our society
8.1 Relates producers and consumers to their functions
8.2 Compares producers to consumers
8.3 Integrates knowledge into buying goods
9. Maintains wise economic habits when shopping
9.1 Buys and eats well-balanced yet economical foods
9.2 Displays ability to choose practical wardrobe
9.3 Wears comfortable yet attractive clothing
OUTLINE
"Specialization"
I. Definitions of Specialization
A. A method of organizing human resources and tools in order to increase productivity.
B. Is closely related the concept "division of labor" in that a worker who works at just one
step as a full time occupation is also a specialist.
II. Distinguishing between Specialization and "division of labor".
III. Advantages of Specialization
A. Efficiency
B. Increased productivity
C. Gains financially
D. Self-satisfaction of job well done
IV. Disadvantages of Specialization
A. Inconvenience
B. Increased dependence and interdependence
C. Repetition and dullness of occupation
D. Unstable wages
V. Classifying types of Advantages
A. Absolute advantage
B. Comparative advantage
VI. Reasons for Specialization
A. Personal welfare
B. Societal. welfare
VII. Relationship of Specialization to Trade
VIII. Factors determining what specialists will produce
A. Consumer wants
B. Resources
IX. Other Economic terms
X. Summary
UNIT CONTENT
Specialization
Specialization is often defined as the act of concentrating productive potential in a good or a
limited number of goods in order to increase both productivity and efficiency. Specialization
and exchange of the products of specialization change the character of scarcity by altering the
uses of resources and the nature of wants. Each person seeks a multitude of goods. People are
not equally efficient in the production of goods because their environments inherited
characteristics and developed skills are different. A person maximizes his economic welfare
by specializing in that good in which he is most productive in comparison to other producers
and trading with others who also specialize on the same basis.
Specialization tends to create a division of labor, therefore the two terms are often used
synonymously. They are related in this way: A worker who works at just one step as a
full-time occupation is said to be. specializing also. One must distinguish between the
two because they actually represent two different concepts. There can be specialization
without division of labor.
ADVANTAGE OF SPECIALIZATION - Like any aspect of life there are advantages and
disadvantages of specialization. I will discuss the advantages first. One advantage of
specialization is the aspect of job creation. Many new jobs are created for those specialists
who have spent the main portion of their educational experiences preparing themselves for
that specific profession or occupation. Specialization necessitates trade. Because
specialization and trade increase productivity, more human wants can be satisfied; people can
have more goods and/or more leisure time. Growth of specialization is likely to stimulate the
development of trade, and vice versa.
Some might see increased salary, on an individual basis, as an advantage of specialization.
We can use doctors as an example. Because the society is dependent on the services of the
medical specialist, the doctor is in a position to demand a certain free for his services. The
society has to choose either pay the fee requested or do without the services of that particular
specialists. This aspect is an advantage as far as the doctor is concerned. The consumer
receives and advantage in that he receives the most efficient services available for his money.
If specialization did not exist, each producer or doctor would have to do al kinds of
case diagnosing, mostly through inefficient means, due to lack of knowledge. Therefore, the
overall advantage of specialization seems to me to be, acquiring self-satisfaction of a job well
done.
DISADVATANGE OF SPECIALIZATION A consequence of specialization which is
thought of as a disadvantage is the fact that some specialized jobs are repetitious and dull.
This can often be the case. Further disadvantages may be summarized as follows inefficiency
The individual may be considered inefficient in a limited amount of working areas at any
given time as well as in their educational experiences preparing themselves for that specific
profession or occupation. Specialization necessitates trade. Because specialization and trade
increase productivity, more human wants can be satisfied; people can have more goods
and/or more leisure time. Growth of specialization is likely to stimulate the development of
trade and vice versa.
Some might see increased salary on an individual basis' as an advantage of specialization.
We can use doctors as an example. Because the society is dependent on the services of the
medical specialist the doctor is in a position to demand a certain fee for his services. The
society has to choose either pay the fee requested or do without the services of that
particular specialists This aspect is an advantage as far as the doctor is concerned. The
consumer receives an advantage in that he receives the most efficient services available for
his money.
If specialization did not exist each producer or doctor would have to do all kinds of case
diagnosing, mostly through inefficient means, due to lack of knowledge. Therefore, the
overall advantage of specialization seems to me to be, acquiring self-satisfaction of a job well
done.
DISADVANTAGES OF SPECIALIZATION –
A consequence of specialization which is thought of as a disadvantage is the fact that some
specialized jobs are repetitious and dull. This can often be the case. Further disadvantages
may be summarized as follows. Inefficiency – The individual may be considered inefficient
in a limited amount of working areas at any given time, as well as in other areas because all
time was spent on one product. Dependence- The more specialization the more dependence
on others for services. At sometime or another each of us has to depend on some other person
for one reason or another. The problem of dependence is presented when the one expected to
carry out a task arid fail to do so. Both parties involved may suffer the consequences.
Decision-making dilemma. The act of making decisions can become very frustrating for
some people. However? it is something everyone of us is faced with in some aspect.
Inconvenience= The consumer experiences some inconvenience because of specialization.
The large corporate bank Is a good example. Each person has a special job for which he is
specially trained the consumer has to visit each department separately to receive the services
he seeks. We find this to be true of doctors who are specialists. The consumer has to drive to
several buildings in many cases to visit doctor's for treatment of various complaints.
Although they receive the most efficient services by going to specialists, the consumer is
spending more time and energy to do so.
So, like any and everything in our society, we find both advantages and disadvantages of
specialization.
1. Economic Man p. 16, William D. Rader, 1970 Westchester, Illinois.
ABSOLUTE AND COMPARATIVE ADVANTAGES
There are two kinds of advantages that economists discuss. The first is referred to as an
"Absolute Advantage". An absolute advantage in production is defined as the situation in
which, in a group of possible producers is most productive. This producer is said to have
an absolute advantage in production of the good. Absolute advantage in production is
determined by comparing the efficiency of two producers of a good. Most modern producers
do not have an absolute advantage in producing a particular good or service. They must make
their choice of what to specialize in on the basis of the comparative advantages which they
have.
A. "Comparative Advantage" is defined as the situation in which the ratio of a producer's
productivity in one good compared to his productivity in another good is greater than
his ratio between these same goods for a second producer.
WHY PEOPLE SPECIALIZE
It is believed that people specialize to increase their personal welfare, and this increases the
overall welfare of the society. Some people derive great pleasure from a specialized job that
they do well. The more people specialize, the more they are dependent on other producers
for their wants and the more interwoven the economic threads of the society become.
As mentioned previously, specialization necessitates trade. There is a close tie between
specialization and trade. If one specializes he 'must trade his specialized services or goods to
another producer and get some goods and services he wants for himself from the other
producers; because he spent all of his time in specialized work. If trade did not exist each
producer would have to produce all his own goods in an inefficient way.
There are many factors that determine what the specialists will produce. Resources
determine choice and type of production by specialists but so do the wants of consumers.
How much consumers want will obviously influence production and the overall level of
consumer want for any good is affected by diminishing marginal utility which in turn
influences how much each individual will want of any good.
Questions Keyed to Specific Objectives
I Knows common terms
1.1 Defines specialization in own words
1. In your own words define the term specialization.
1.2 Identifies the meaning of "consumer education" when used in context
2. Which of the following best explains "consumer education" ?
A. The preparation of an individual, to develop the skill to purchase goods and services
wisely.
B. The preparation of an individual to develop skills? concepts and understandings needed to
achieve maximum satisfaction and utilization of resources.
C. The preparation of an individual to develop skills concepts, and understandings needed to
bargain with producers to get the desired services and goods.
1.3 Selects terms that are similar in meaning
3. Which one of the following examples doesn’t name a resource?
A. land
B. scarcity
C. labor
D. capital
1.4 States the meaning of interdependence
4. In one statement explain the term interdependence.
2. Knows specific facts
2.1 Identifies the four resources
1.List the four natural resources we study in economics.,
2.2 Matches the careers with appropriate names and uniforms
2. Match the appropriate career(s) in column A with the proper group in column B. Some
items in column B may be used once? twice, or three times.
Column A
Dentist
Plumber
Carpenter
Mason
Nurse
Musician
Teacher
Postman
Milkman
pediatrician
Column B
gallon glass jar
stethoscope
drill
pitch pipe
chalkboard
stamper
cement
2.3 Outlines the "Real Plow"
3. Outline the phenomena known as the "Real Flow".
3. Knows basic concepts
3.1 States the importance of specialization
1. State why- specialization is thought to be very important.
3.2 Knows the value of specialization
2. Can you defend the concept of specialization in our society?
4. Understands facts
4.1 Gives examples of specialists
1. Give ten examples of what we call specialists.
4.2 Groups lists according to occupation
2. Arrange the lists so they are listed according to occupation.
5. Estimates future consequences implied by knowledge learned
5.1 Infers positive and negative aspects of specialization
1. If we all were specialists in only one skill; what do you think the future would hold for our
society?
5.2 Summarizes the value of "consumer education"
2. Summarize why we need to study "consumer education".
5.3 Predicts the outcome of poor decision-making
3. What would happen if everyone just went and bought whatever and whenever they wanted
to?
6. Analyzes the need for specialization in our society
6.1 Categorizes specialists
1. Place each specialist in his appropriate category.
6.2 Explains the reasons for different wages in specialization
2. The reasons for different wages in specialization are
7. Judges the value of resources
7.1 Describes natural resources
1. Describe each natural resource.
7.2 Explains the differences between the resources
2. Explain how each resource is different from the other.
7.3 Discriminates between wise and unwise decision-making in any given situation
3. What constitutes a wise decision?
8. Recognizes the need for both producers and consumers in our society
8.1 Relates producers and consumers to their functions
1 • What are the functions of the producer and consumer?
8.2 Compares producers to consumers
2. Compare the producer to the consumer in our society.
8.3 Integrates knowledge into buying goods
3. Choose a magazine, and clip items that are considered goods..
9. Maintains wise economical habits when shopping
9.1 Buys and eats well balanced yet economical foods
(This item would be evaluated by means of a checklist),
9.2 Displays ability to choose practical wardrobe
(Through teacher observation this item would be evaluated),
9.3 Wears comfortable yet attractive clothing
(This item would be evaluated by teacher observation as well).
SUMMARY
It is hoped that after the child has been introduced to the concept of specialization he will
gain a better understanding of our diverse society. By examining the aspects of this
particular economical concept; the child should determine why specialization is an important
part of our economical system. Possibly after studying this unit the child will be better
equipped with knowledge of specialization and the knowledge will be retained in a structured
and organized way, so as to foster the ability to verify or reject hypotheses then restructure
new patterns of thinking leading to new knowledge.
BIBLIOGRAPHY
1. Boucher Bertrand P. How Man Provides. New York: Home Library
Press; 1963 (Cloth)
2. Calderwood James Lawrence, John, Maher John. Economics in the Curriculum New
York: John Wiley and Sons, l970 (Cloth)
3. Helibroner, Robert L., The Making of Economic Society. 2nd edition. Englewood Cliffs,
New Jersey: Prentice-Hall Inc., 1968 (Cloth and Paper)
4. Knight Frank H., The Economic Organization New York:
Harper and Row, 1951 (Cloth) 1963 (Paper)
5. Martin Richard S., and Miller, Reuben G. Economics and Its Significance. Social Sciences
Seminar Series Columbus, Ohio: Chares E. Merrill? Inc. 1965 (Cloth)
6. Soule, George Economics for Living New York:
Abelard..Schuman 19511(Cloth)