specialisation an division of labour

Question 1

define division of labour and specialisation

Answer 1

specialisation is when workers are assigned specific tasks in the production process. division of labour: when the production process is split into stages enabling workers to focus on specific tasks.

Question 2

how does specialisation help reduce scarcity in individual countries and shift the PPF outwards

Answer 2

specialisation requires trade which means that countries that specialise in production of somthing can export them in exchange for something they need. this allows them to get more resources that are needed and allocate them so that production of capital an consumer goods increase (ppf outwards)

Question 3

how will increased trade increase efficiency

Answer 3

increased trade leads to increased competition from abroad therefore domestic monopolies will have increased incentives to cut prices an due to price cut they need to be efficient an efficiently allocate resource usage

Question 4

why is division of labour more efficient

Answer 4

workers require less training- tasks are repetitive so they master. less time wasted when switching between tasks. workers get to perform tasks that best suit their skills an temperament. workers gain a sense of achievement an loyalty from production branch.

Question 5

potential cons of division of labour

Answer 5

staff turnover since tasks may become boring due to repetition. loss of motivation resulting in inefficiencies (careless errors/lack of concentration). production process is interconnected so if one process halts the entire production has to halt.