Specialisation and the division of Labour

Question 1

Define Specialisation

Answer 1

Specialisation is the production of a limited range of goods by an individual or a firm or a country in co-operation with others so that together a complete range of goods are produced.

Question 2

According to Adam Smith, what is the division of Labour?

Answer 2

According to Adam Smith, the division of Labour is the specialisation by workers, who perform different tasks at different stages of production to make a good or a service, in co-operation with others. This increases output.

Question 3

Give 3 advantages of the division of labour

Answer 3

Output increases as the economy is making use of all the resources available.

Time is saved because the labour is not constantly changing tasks.

It’s cost effective as you don’t have to spend money on new machinery for individual workers.

Question 4

Identify and explain 3 disadvantages of the division of Labour

Answer 4

Workers often find it quite monotonous as they have to repeat the same job again and again.

Workers may report being sick over a period of time, because they are so bored of the work.

The size of the market will limit the division of Labour. This results in a reduction in the quality and quantity of goods and services.