Division of Labour Flashcards

1
Q

Division of labour

A

when the production process is broken down into individual tasks

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2
Q

advantages of division of labour

A

-improved dexterity
-improved productivity
-reduced unit costs = higher profit
-higher quality final product
-no time wasted moving around
-workers find efficient alternatives
-less training required

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3
Q

disadvantages of division of Labour

A

-monotony of repetition reduces morale
-absenteeism disrupts the production process
-decline in quality due to boredom
-workers easily replaced by automation
-firms may have to pay higher wages

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4
Q

specialisation

A

a process whereby and individual, firm or country focuses its production on a limited scope of goods or services in order to achieve a greater degree of productive efficiency

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5
Q

specialisation results in…

A

-increased output
-higher incomes
-higher living standards

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6
Q

the benefits of specialisation depend on…

A

the use of money by means of exchange

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7
Q

division of labour requires an efficient means of exchange because…

A

specialist workers are not self sufficient

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8
Q

the extent of division of labour is determined by…

A

the size of the market

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9
Q

production

A

a measure of the value of the output of goods and services

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10
Q

productivity

A

a measure of the efficiency of the factors of production: output per unit of input over a specific period of time

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11
Q

factors affecting labour productivity

A

-advancements in production technology
-training to boost labour skills
-quality of the management in a business
-motivation or higher pay

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12
Q

labour productivity

A

the output per person per period of time

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13
Q

productive efficiency

A

the lowest cost per unit of output

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14
Q

Barter

A

the direct exchange of goods and services without the use of money as a medium of exchange

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15
Q

how did Adam Smith illustrate the benefits of division of labour

A

the allocation of tasks in a pin making factory, in the Wealth of Nations (1776)

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