specialisation and division of labour

Question 1

productivity

Answer 1

how much output is produced by a factor of a production in a given period of time and economists are most concerned with labour productivity how much output is produced by labour in a given period of time

Question 2

specialisation and division of labour

Answer 2

the division of labour - we split up the production process into smaller separate tasks- then assign workers to each of these tasks- this allows workers to specialise- become more productive

Question 3

money

Answer 3

barter is when one good is exchanged for another however within barter there is a double coincidence of wants therefore money is used as a medium of exchange when purhasing and exchanging goods

Question 4

pros

Answer 4

specialisation can increase output as when specialising each worker is able to concentrate on what they’re best at increasing efficiency and hence productivity

quality in specialising workers can improve productivity of the product they’re making

Question 5

pros

Answer 5

specializing can decrease unit costs due to the same worker working in the same amount of time can produce more ouput asa they are now more efficient
eg if working for £20 p hour
before specialising
20/hour for 10 pizzas an hour
unit cost = 20/10 = £2

after specialising and an increase in productivity
20/hour for 40 pizzas an hour
unit costs =20/40 = £0.50

Question 5

cons

Answer 5

specialisation can lead to boredom and de motivation thus increasing productivity and additionally reduce quality of the good

Question 5

cons

Answer 5

boredom can also cause absenteeism where workers may just skip work
or workers may quit - increasing empolyee turn over and a higher amount of employees quitting there job
it can also break down production if significant members in the production process aren’t available
additionally extra recruitment costs and training costs
overall increase in costs

Question 6

pros

Answer 6

saves money on training costs as workers only have to train workers on each specialised job

Question 7

cons

Answer 7

lack of broad skill set for workers especially if they are needed for another role meaning they will have to be retrained- an additional cost
also with this small skill set it will be very hard to find another job leading to a potential increase of unemployment