Friday, May 31, 2013

Chapter 3: Group B Discussion Question

Discuss a task where division of labor and specialization benefited you. (Hint: Think of a work, home, or school project situation.) Be sure to use economic terms from the chapter to describe the following.


  • What task did you use division of labor and specialization to accomplish?
As seniors at my high school, we were responsible for setting up international day. My senior class was only approximately thirty people, and we each got paired up to decorate a classroom around a particular country. Once we were assigned a country and a classroom, we had the clean and rearrange the classroom, as well as assist the parents that were bringing the food and decorations for that country. I got paired up with a girl named Shama, and we were in charge of decorating the choir room to represent the United Kingdom. Somebody had to vacuum, and somebody had to go around to the teachers and collect materials to make decorations.

  • Who had a comparative advantage? Who had an absolute advantage? Explain how these advantages helped determine the divison of labor.
Before we started cleaning and decorating, we talked about how to get it done as efficiently as possible. It would take me about 10 minutes to vacuum the whole classroom and rearrange the tables. It would take Shama about 1 extra minute to do the same. She was also new at the school and didn't know her way around the building. One of us had to go around to various classrooms and collect decorating materials. As Shama didn't know where  to go, it would take her about 15 minutes to collect enough supplies. Since I knew where each classroom was, it would probably only take me about 7 minutes. While I could clean the room slightly quicker than Shama, and I could definitely gather decorations quicker, she specialized in cleaning while I specialized in gathering decorations. I had an absolute advantage over Shama in collecting supplies to decorate, since it took me less time (the input) to complete the task. Shama had the comparative advantage in vacuuming and rearranging the tables, while I had the comparative advantage in gathering supplies. So, in order to complete the tasks most efficiently, she cleaned the classroom while I collected decorations. 

  • Reflect on how the work to complete the task would have gone without specialization, or "trade," of labor.
Without specialization, or trade of labor, it would have taken us longer to clean and decorate, and we would have less free time to study for our upcoming exams. As it was, it took us 11 minutes to compete the tasks. However, if I had cleaned and Shama had collected supplies, it would have taken us 15 minutes. I had the comparative advantage in gathering supplies, while Shama had the comparative advantage in cleaning. If we had  each done the opposite tasks, not only would it have taken longer, but it would be much less efficient.

    Thursday, May 30, 2013

    Opportunity Cost: Discussion Question

    In the 1890's Marshall said, “economics is the study of man in the ordinary business of life." For one day, list all of the choices you had to make. Choose one of these decisions to briefly discuss on your blog.

    • What was the decision you were faced with?
    While my parents are in New York, I am babysitting my younger brother. I wanted to do something nice for my brother, so I debated whether or not to make him breakfast before school.

    • What other alternative(s) did you have?
    I could sleep in for a few more hours.
    I could get an early start to my day instead of focusing on him.

    • What was the opportunity cost of your choice?
    If I didn't make my brother breakfast before school, I would be able to sleep in for a couple more hours.
    If I sacrificed a few hours of sleep, I could make my brother a nice breakfast.

    • What criteria did you use to make the choice? Did utility play are part in your decision? Explain.
    Utility: a person's subjective measure of well-being or satisfaction

    Utility definitely played a part in my decision. I would be happy to be able to sleep a little bit longer, but it would also make me happy to do something kind for my brother. Plus, making him breakfast would make my brother happy, which is important to me too. Additionally, I would like to start waking up a bit earlier anyway, so I can get in a routine. Overall, there were greater benefits to making my brother a nice breakfast than to sleeping more.