specialisation and division of labour

Question 1

specialisation

Answer 1

-concentration of production on a narrow range of goods and services

Question 2

advantages and disadvantages of specialisation

Answer 2

ad:
-higher output
-wider range of goods and services
-greater allocative effciency
-higher productivity

disadvantages
-finite resources
-changes in fashions/trends
-de-industrialisation

Question 3

what is the division of labour

Answer 3

breaking down production process into separate parts after specialising

Question 4

advantages vs disadvantages of division of labour

Answer 4

ad:
-more productive (higher wages, time saving, decrease cost)
-specialist capital for workers
-lower prices, higher quantity and quality

dis:
workers demotivated
-high worker turnover
-risk of long term unemployment