2 : Specialisation

Question 1

what is specialisation ?

Answer 1

businesses is focusing on a specific area to improve efficiency and expertise

Question 2

what are some advantages of specialisation ?

Answer 2

• improvement in quality : because workers and firms , performing the same task become so good that the quality of the product increase
• workers will require less training
• increase in productivity : workers become so good at producing certain goods and services it increases the output produced

Question 3

what are some disadvantages of specialisation

Answer 3

• over reliant on good weather
• finite resources : resources required in production may run out which is a very big deal with countries
• de-industrialisation : other countries may be capable of producing the same product or service at a lower price

Question 4

what is division of labour ?

Answer 4

when workers specialise in doing one job or part of a job (production process is broken down into separate parts

Question 5

what are some advantages of labour ?

Answer 5

• workers become very good at their job
• productive efficiency
• workers are employed to jobs they are most suited

Question 6

what are some disadvantages of division of labour ?

Answer 6

• long term unemployed : if workers lose their jobs
• workers can become bored
• pay and working conditions are low : poor working conditions and long hours

Question 7

define productivity ?

Answer 7

output per unit of input employed

Question 8

define worker productivity

Answer 8

output per worker

Question 9

define labour productivity

Answer 9

output per unit of capital employed machines