Micro-Measuring economic performance: Division of Labour

Question 1

Define division of labour

Answer 1

Breaking down the production process into separate tasks ( narrow) upon/after specialisation
workers don’t make entire goods but small parts with a production line

Question 2

Explain the advantages of worker’s high productivity

Answer 2

-Repetitive manual tasks raise productivity
lower cost of production for firm and consumer

Question 3

Explain the benefits of specialed capital

Answer 3

Specialised capital ( machines)can further increase productivity

Question 4

What are the benefits of division of labour?

Answer 4

1. Workers highly productive
2. Specialised capital for workers
3. lower prices and higher quality/choice and quality for consumers

Question 5

What are the negatives of the division of labour?

Answer 5

1. Demotivation of workers-> repetitive tasks, less productive and increased cost of production
2. High worker turnover-> leaving
3. Risk of long-term unemployment-> overspecialization if tech takes their job or they can’t easily transfer jobs
4. Highly standardised goods/services-> lose unique touch