Job specialization is known to:

• A. decrease the need for capital in the production process
• B. eliminate the importance of entrepreneurship in the economy
• C. reduce the efficiency of production by limiting worker skills
• D. increase productivity by allowing workers to focus on specific tasks

Answer: (D)

Verified step by step guidance

1. Understand the concept of job specialization: it refers to dividing the production process into distinct tasks, with each worker focusing on a specific task.
2. Recognize that job specialization allows workers to become more skilled and efficient at their particular tasks, which generally leads to higher productivity.
3. Analyze the options given: decreasing the need for capital, eliminating entrepreneurship, or reducing efficiency are not typically associated with job specialization.
4. Recall that specialization usually increases efficiency and productivity because workers gain expertise and reduce time lost switching between tasks.
5. Conclude that the correct effect of job specialization is to increase productivity by allowing workers to focus on specific tasks.