Section 2

Question 1

What is specialisation?

Answer 1

This is when a worker, firm or country devote their factor endowment to the production of a limited range of goods and services.

Question 2

What is the division of labour?

Answer 2

This occurs as a result of specialisation.Division of labour is when the production process is subdvided into specific tasks and workers are allocated to these individual tasks in a hope to increase output.

Question 3

What are the advantages of specialisation?

Answer 3

Increased output,better quality products,higher productive efficiency as resources are used more efficiently. Training costs reduced.Higher productivity output per unit labour per unit time.

Question 4

WWhat are the disadvantages of specialisation?

Answer 4

Boredom,overdependancy on one product,structural unemployment.Very specific skill set.Interdependancy, exploitation.