Why Do Most People Choose to Specialize in a Narrow

question 272

Multiple Choice

Why do most people choose to specialize in a narrow set of skills for their work, rather than to learn a little bit about several varied fields of endeavor?

• A) They feel that doing so will minimize their chances of being unemployed.
• B) They don't correctly perceive the costs of being so specialized.
• C) It allows them to earn more income by being more productive.
• D) They are unaware of how much better off they would be if they diversified their skills.

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Definitions:

Market Wage

The prevailing wage rate paid for a specific job in the labor market, determined by the supply and demand for that type of labor.

Market Price

The going rate at which an asset or service can be acquired or disposed of in a certain market.

Marginal Product

The additional output gained by employing one more unit of a specific input, holding all other inputs constant.

Market Wage

The average wage earned by workers in a specific market or industry, determined by the supply and demand for labor in that market.