Specialization and the Division of Labour Flashcards
(7 cards)
What is specialisation?
The concentration of production on a narrow range of goods or services.
Give three advantages of specialisation.
Higher output → increases productivity and economic growth
Improved allocative efficiency
Better quality and innovation through expertise
What are two disadvantages of specialisation?
Over-dependence on limited resources or industries
Vulnerability to changes in fashion, demand, or external shocks
What is the division of labour?
The process of breaking down production into smaller tasks, with workers specialising in specific roles.
Name two benefits of the division of labour.
Time-saving → workers become quicker at tasks
Increased productivity and lower unit costs
What are three downsides of division of labour?
Worker demotivation from repetitive tasks
High labour turnover
Greater risk if a specialised task becomes obsolete
How does division of labour affect prices and consumer choice?
Leads to lower prices and higher quantity and quality of goods and services for consumers.
