specialisation and division of labour Flashcards
What is the concept of specialisation in economics?
The focus on producing a specific good or service, allowing for increased efficiency and trade benefits
Specialisation enables economic units to concentrate on what they do best, leading to greater overall production.
What is the Division of Labour?
Specialisation by workers where the production of a good is broken into many separate tasks, each performed by one person
This concept allows for increased efficiency in production processes.
What are the advantages of specialisation?
- Increased efficiency
- Higher productivity
- Greater trade opportunities
Specialisation allows economic units to focus on their strengths and trade surplus goods.
Define productivity in the context of economics.
Output per unit of input employed over a given time period
Productivity can be measured in various ways, including labour and capital productivity.
What is labour productivity?
Output per worker per time period
This measure indicates how effectively labour is being utilized.
What is capital productivity?
Output per unit of capital employed per time period
This measure assesses the efficiency of capital utilization in production.
True or False: Specialisation can occur between nations.
True
For example, Honduras may specialise in banana production while trading for cars from the US.
Fill in the blank: Specialisation by individuals is called the _______.
[Division of Labour]
Give an example of specialisation within economies.
- London specialising in financial services
- Cornwall specialising in mining
These examples illustrate how different regions focus on specific industries.
What is the relationship between the division of labour and productivity?
The division of labour increases productivity by allowing workers to focus on specific tasks
This focused approach typically leads to faster production times and improved output.
