Micro Chapter 8 Production and Division of Labour

Question 1

What is consumer good ?

Answer 1

Goods that comsumers buy to satisfy wants

Question 2

What is producer (capital) good ?

Answer 2

Goods that producers buy to help production

Question 3

What is private good ?

Answer 3

Good which is rival and excludable in consumption

Question 4

What is public good ?

Answer 4

Good which is non-rival and non-excludable in consumption

Question 5

What are types (stages) of production

Answer 5

Primary production
Secondary production
Tertiary production

Question 6

What are the three types of division of labour ?

Answer 6

1. Simple division of labour
2. Complex division of labour
3. Regional division of labour

Question 7

What are the advantages of division of labour ?

Answer 7

1.Raising labour productivity
2.More efficient use of capital goods
3.Improving standard of living

Question 8

What are the disadvantages of division of labour ?

Answer 8

1. Work become more dull
2. Greater risk of unemployment
3. Greater degree of interdependence
4. Loss of craftmanship
5. Standardisation of products