Productivity

Question 1

Describe division of labour

Answer 1

Occurs where production is broken down into many separate tasks

Question 2

Adv of division of labour

Answer 2

• raises output per worker as ppl become more efficient from constant repetition of a task
  = help to lower cost per unit
  = lead to lower prices for consumers
• specialist capital for workers
• higher quality

Question 3

Dis of division of labour

Answer 3

• repetitive work that requires little skill lowers motivation
  = workers take less pride in work
  = quality of work suffers
  = increase of worker absenteeism
• people may choose less boring jobs
  = high worker turnover for businesses
  = in 2010 worker to was 13.5%
• mass produced, standardised goods lack variety for consumers

Question 4

Describe specialisation

Answer 4

Concentration of production on a narrow range of goods or services

Question 5

Define short and long run

Answer 5

Long run- assumes all factors of production can change
Short run- assume at least one factor of production is fixed eg capital

Question 6

Adv of specialisation

Answer 6

• larger range of goods or services available
• greater output
  = more trade and growth
  = more jobs
  = better living standards
  = GDP growth
• quality improvements

Question 7

Dis of specialisation

Answer 7

• finite resources that are needed for production
  = nothing to produce
• changes in fashion/ trends
• national interdependence
  = as trade increases countries become closer related and dependant
  = could be war etc that restricts trade therefore growth
• de industrialisation
  = other countries can produce products cheaper etc

Question 8

Define explicit costs

Answer 8

Require actual payment

Question 9

Define implicit costs

Answer 9

Opportunity costs

Question 10

Explain the average fixed cost diagram

Answer 10

As firm increases output FC stay constant
= FC

Question 11

Describe marginal cost

Answer 11

Addition to a firms total costs of producing one more unit

Change in TC/change in output