Micro - Specialisation And The Division Of Labour ✔️ Flashcards
Specialisation and division of labour
Specialisation and division of labour
Explain how the specialisation and division of labour increases output.
Increased output - repetitive nature of specialisation means that workers develop greater skill in performing their particular task. As a result of this, workers are able to produce more goods in the same amount of time.
Explain how the specialisation and division of labour leads to less wastage
Less wastage - As workers become more skilled they make less mistakes and waste less time. Therefore increased efficiency and reducing wastage.
Explain how the specialisation and division of labour leads to lower unit costs
Lower unit costs - The economies of scale gained from the increased output cause unit costs to decrease.
State the disadvantage of specialisation & division of labour
Boredom - the autonomy of the process can result in boredom amongst workers. This may result in workers to become less productive.
(Advantage) Explain how specialising in the production of goods and services to trade leads to greater output.
Greater output - This is due to the fact that by specialising it allows businesses to become better at producing them, therefore they’re able to produce in greater quantities. This will cause unit costs to decrease thus increasing consumer surplus and the prices of goods/services decrease.
(Advantage) Explain how specialising in the production of goods and services to trade leads to greater variety
Greater variety -e.g. a country may specialise in the production of hoovers. Although the good being specialised in is hoovers, there will be a range of different types of hoovers produced thus giving customers more choice within particular goods.
(Advantage) Explain how specialising in the production of goods and services to trade leads to Economic Growth
Economic growth - Specialisation also allows greater quantities of goods to be produced and therefore increased trade. Countries can benefit from this, especially if their export revenue is greater than import expenditure it therefore can lead to economic growth.
(disadvantage) Explain how specialising in the production of goods and services to trade leads to Structural Unemployment.
Structural unemployment - if another country becomes better at producing a certain good than the domestic country it will result in a decline in sales in the domestic country, due to changes in comparative advantage. de-industrialisation may occur as the domestic country can no longer compete with other countries. domestic workers will have a narrow skill set. As a result of this, they do not have the necessary skills to find employment in other sectors. Causing long term unemployment
(disadvantage) Explain how specialising in the production of goods and services to trade leads to Over reliance
Over reliance - e.g. one country may sell vegetables to the domestic country, if there is a draught in that country then it will affect the ability for them to produce vegetables, causing the supply in the domestic country to drop.
(disadvantage) Explain how specialising in the production of goods and services to trade leads to Changes in trends
Changing trends - It may be difficult for countries to specialise in goods that are prone to changes in trends This is due to the fact that firms may find it difficult to adapt to these changes if they’re overspecialised.
(disadvantage) Explain how specialising in the production of goods and services to trade leads to finite resources
Finite resources - A country may specialise in certain goods that need the same resources. This may lead to finite resources depleting which can cause problems for the country in the long term. By producing lots of different goods It is more likely that different resources will be consumed at a slower rate thus decreasing the risk of resource depletion.
state the functions of money
As a medium of exchange, a measure of value, a store of value, a method of deferred payment
