Specialisation And Divison Of Labour

Question 1

What is specialisation?

Answer 1

The concentration of individuals, firms or nations on producing a limited range of goods/services

Question 2

What is division of labour

Answer 2

Form of specialisation where the tasks needs to produce an item are divided among workers

Question 3

What are the advantages of specialisation?

Answer 3

• higher output - resources in efficient production - which can allow for countries that are producing goods/services that are inefficient - increase in trade - increase employment 0 increase growth
• wider range of goods/services
• greater allocative efficiency- tackle scarcity resources - countries can import goods/services they’re inefficient in producing - satisfy consumer demand

Question 4

Disadvantages of specialisation?

Answer 4

• changes in fashion/trends
• finite resources - companies or countries that are over specialised that require certain resources could make them vulnerable to economic shocks

Question 5

What are the advantages of division of labour?

Answer 5

• increase in worker productivity - increase wages - lower costs of production - lower p for consumers
• increase in quantity/ choice for consumer
• increase on quality

Question 6

What are the disadvantages of division of labour

Answer 6

• de motivate workers
• higher worker turnover
• risks of long term unemployment - due to machinery replacing labour tasks ( structural unemployment or technological )