Opportunity cost and specialization - 8th IIT

The value that you or a company has to give up to get something else.

• Opportunity cost

• Quality assurance

• Quality control

• Marketing

When people, companies, or regions decide to focus on a specific task this is called...

• specialization

• target audience

• target market

Specialization can happen at different levels.

• True

• False

Example of specialization at employee level...

• the skilled carpenter who focuses on producing high-quality violins.

• The local accountants who focus on doing other people's tax calculations.

• The Santos region in Brazil specializes in coffee production.

Example of specialization at the business level...

• Japan specializes in technology and computing

• Nestlé specializes in chocolate production

• A mortgage adviser for a bank

Example of specialization at region level...

• Audi specializes in making cars.

• The Santos region in Brazil specializes in coffee production.

• The Ivory Coast specializes in the production of cocoa

What is psychic profit?

• Non-financial rewards

• Magical power

Specialization is always the best option for countries.

• True

• False

When countries are specialized in one kind of product...

• resources are used more effectively.

• resources are not used effectively.

Opportunity cost can be applied to more areas than just business.

• True

• False