2.5 Specialisation And Division Of Labour

Question 1

What is Specialisation ?

Answer 1

When an individual, company, or country concentrate on producing a specific type of good or service instead of a wide variety

Question 2

What is Division Of Labour ?

Answer 2

Process of separating tasks in an economic system or organisation so that individuals, organisations, or nations can specialise.

Question 3

What is production ?

Answer 3

The process of turning input into outputs that have a benefit

Question 4

How is Labour Productivity Calculated ?

Answer 4

Total Output / Units Of Labour

Question 5

What are some benefits of Specialisation and Division Of Labour ?

Answer 5

• Higher output due to higher labour productivity
• Labour becomes more skilled - higher quality
• Economics Of Scale: Higher output = lower average cost due to bulk buying
• Potential lower costs for consumer.

Question 6

What are some drawbacks of Specialisation and Division Of Labour ?

Answer 6

• Repetitive work leads to boredom and lower productivity
• Workers demotivated by task - lower quality
• Higher worker turnover
• Can lead to structural unemployment