Title: 
Headings: 

Content: Workers who specialize become more efficient and thereby
increase productivity. Why do many producers specialize? because specialization increases productivity. How does specialization affect the economy? Specialization increases an individual or groups productivity (and income) according to the principle of comparative advantage. What role did the division of labor play in helping to increase production during the indutrial revolution? Division of labor, helped increase productivity and gave birth
to the factory system, which entailed increased division of labor
and specialization of function. What is productivity deal? A productivity deal is an agreement between an employer and
employee. In this agreement, the employer commits to increase the
pay rate with increase in productivity.