specialisation and division of labour Flashcards
Specialisation
When an individual, a firm, a region or a country concentrates on the production of a limited rage of goods and services
Division of labour
The specialisation of workers on individual tasks in the production process to increase productivity
Average cost (unit cost)
Refers to the per-unit cost of production
Total cost of production/total number of units produced
Measures the amount of money that the business has to spend to produce each unit of output
Labour productivity
Measures the output per worker in a period of time.
If productivity rises, firms can produce more with the same number of workers
advantage of specialisation
output
Higher output. Increase in trade and growth
advantage of specialisation
goods and services
Wider range of goods and services
advantage of specialisation
Greater allocative efficiency
advantages of specialisation
production
Higher production due to greater productivity because of increase in workers
advantages of specialisation
qualitiy
Quality improvements
Drawback of specialisation
recourcses
Finite resources
drawback of specialisation
Changes away from the goods and services
drawback of specialisation
de-industrialisation
drawback of specialisation
National independence
advantages of division of labour
workers
Workers are highly productive
advantages of division of labour
capital
Specialist capital (machinery) for the workers
