1.1.5

Question 1

what is division of labour?

Answer 1

the division of labour occurs where the production process is broken down into many separate tasks

Question 2

what is an advantage of division of labour?

Answer 2

it can raise output per person as people become proficient through constant repetition of a task

Question 3

what is economies of scale?

Answer 3

specialising and the resulting efficiency lead to economies or scale, as the production qualities increase, average costs tend to decrease, this leads to higher profitability for firms and more afforf products for consumers

Question 4

what are the potential disadvantages of division of labour?

Answer 4

it’s repetitive, unrewarding work can cause alienation which causes lower productivity, quality may suffer and mass production may lack variety for consumers

Question 5

what is specialisation?

Answer 5

refers to the process by which individuals, firms or regions concentrate their efforts on producing a narrow range of goods or services in which they have a comparative disadvantage

Question 6

what are the potential advantages of specialisation?

Answer 6

labour productivity, surplus output, lower prices, economic growths