Specialisation and Division of Labour

Question 1

What is Specialisation?

Answer 1

The concentration of production over a narrow range of goods and services

Question 2

4 Advantages of Specialisation :

Answer 2

. Higher output of trade and growth
. Higher productivity through better use of workers
. Quality improvements
. Wider range of goods and services

Question 3

4 Disadvantages of Specialisation :

Answer 3

. Changes in fashion and trends
. De Industrialisation
. National Independence
. Finite resources

Question 4

What is the Division of Labour?

Answer 4

Breaking down the production process into seperate tasks upon specialisation

Question 5

3 Advantages of Division of Labour

Answer 5

. Workers highly productive - (inc wage, dec COP)
. Specialist capital for workers
. Lower prices higher quantity

Question 6

3 Disadvantages of Division of Labour :

Answer 6

. Workers demotivated
. Risk of long term unemployment
. High worker turnover

Question 7

What did Adam Smith do?

Answer 7

Emphasise the idea of specialisation through his book ‘The Wealth of Nations’
Argued it increases prodictivity and economic growth