Specialisation and Division of Labour Flashcards
What is specialisation?
When we concentrate on a product or task.
What are the different levels that specialisation occurs in?
Within extended families in poor countries.
Within businesses or organisations.
In a country.
In a country or region.
What can the gains of specialisation be?
Higher output.
Variety
Bigger Market
Competition and lower prices
What is a soft commodity?
Natural resource, such as agricultural.
What does the city of london specialise in?
Finance and Consultancy.
When does the division of labour occur?
When production is broken down into many separate tasks.
What is the correlation between division of labour and output per person?
Division of Labour results in higher output per person.
What is the link between productivity and output per worker?
Productivity increases by higher output.
What happens to the unit cost when productivity increases.
Unit Cost decreases.
What are some benefits associated with size?
E.G bulk buying, price decrease.
What is the equation for revenue?
Sales * Cost of Product
What should reduced supply cost lead to?
Lower prices for consumers of goods and services.
What does lower prices for consumers result in?
Gains of economic welfare.
What does occupation immobility mean?
Difficult to move one job to another job.
What may be some disadvantages of Division of Labour?
Dissatisfied workers may have:
Low Motivation
Lower productivity
Quality may suffer
