Lesson 10 - Specialisation and the division of labour

Question 1

Why does productivity matter?

Answer 1

If an economy is more productive then it will attract more foreign investment as businesses can make goods at a faster rate. This increases employment and triggers the multiplier effect. Prices and inflation will also be lower as businesses can lower prices if they produce more.

Question 2

Give an advantage of specialisation?

Answer 2

Increase of skill per worker

Question 3

Give another advantage of specialisation?

Answer 3

Time is saved as people do not have to move between tasks

Question 4

Define specialisation?

Answer 4

When we concentrate on a particular product or task

Question 5

Give three examples of where specialisation takes place?

Answer 5

Within businesses
In a region of a country eg steel in Sheffield
In a country

Question 6

What is specialisation by individuals called?

Answer 6

Division of labour

Question 7

Division of labour occurs when production is broken down into what?

Answer 7

Many separate tasks

Question 8

What does division of labour help to raise?

Answer 8

Output per person

Question 9

Why does division of labour raise output per person?

Answer 9

People become more efficient through the repetition of a task

Question 10

Give an advantage of increased productivity?

Answer 10

Businesses can lower costs

Question 11

Give an advantage to the business of division of labour?

Answer 11

Training costs low

Question 12

Give another advantage to the business of division of labour

Answer 12

Increased productivity

Question 13

Give a disadvantage to the business of division of labour?

Answer 13

The business will have to pay workers more if they are better specialised.

Question 14

Give an advantage to the employee of the division of labour

Answer 14

Workers are more desirable

Question 15

Give a disadvantage to the employee of division of labour?

Answer 15

Jobs will be repetitive and boring