Specialisation

Question 1

When does specialisation occur?

Answer 1

when firms/ countries focus on producing a specific good/service

Question 2

What happens when firms specialise in production?

Answer 2

efficiency increases

Question 3

Name 3 advantages of specialisation

Answer 3

1. increases economic welfare (trading with other countries)
2. firms can benefit from economies of scale
3. workers become more efficient + need less training

Question 4

Name 2 disadvantages of specialisation

Answer 4

1. workers become bored and alienated
2. leaves firms vulnerable if goods go out of style

Question 5

When does division of labour occur?

Answer 5

when workers focus specific jobs in a firm

Question 6

Name 4 benefits of division of labour

Answer 6

1. increased efficiency
2. workers can become experts
3. less training needed
4. higher wages

Question 7

Name 3 potential costs of division of labour

Answer 7

1. only works for large scale production
2. workers become alienated
3. production cant move forward if one aspect cant work