Specilisation & The Divison Of Labour Flashcards
(25 cards)
What are the four factors of production?
- Land
- Labour
- Capital
- Enterprise
These factors are essential for the production of goods and services in an economy.
Define ‘Land’ in the context of factors of production.
Natural resources like oil, coal, rivers, lakes, sun, sea, wind etc.
The reward for owning land is rent or income.
What is ‘Labour’ in terms of factors of production?
The human resources available in any economy.
The quality and quantity of labour are crucial for economic development.
What does ‘Capital’ refer to in the factors of production?
Physical resources that are man-made to aid production.
The quality and quantity of capital are vital for economic growth.
What is ‘Enterprise’ in the context of factors of production?
A form of human capital with two functions: organization of other factors of production and entrepreneurship.
Entrepreneurship involves the ability and willingness to take risks and innovate.
What does ‘Specialisation’ mean?
The process by which individuals, firms, and economies concentrate on producing particular goods and services where they hold an advantage.
Specialisation can lead to increased efficiency and effectiveness in production.
How does specialisation affect trade?
It leads to trade at every level, including individual, business, and international levels.
Specialisation is linked to increased output and living standards.
What is a potential problem of specialisation?
Your specialist skills may no longer be needed.
In a changing economy, flexibility and multi-skilling become essential.
What is the ‘Division of Labour’?
The production process being broken down into a series of tasks.
This concept gained prominence with the introduction of the conveyor belt in production.
True or False: Specialisation has led to a decrease in living standards in many parts of the world.
False
Specialisation and trade have resulted in a large expansion in living standards.
Fill in the blank: The reward for owning land is _____
rent or income.
This is the economic return for the factor of land.
What role does the quality and quantity of labour play in an economy?
They are of huge importance for economic development.
Low income countries often face challenges related to population and skill levels.
Name two examples of natural resources classified as ‘Land’.
- Oil
- Coal
Other examples include rivers, lakes, sun, sea, and wind.
What is the significance of flexibility and multi-skilling in the modern economy?
It provides more opportunities and reduces the chance of becoming redundant.
This is especially important in a rapidly changing job market.
What is a key benefit of specialisation at the worker and business level?
Increased output.
Specialisation is expected to enhance productivity.
True or False: Specialisation is beneficial only for individuals and not for countries.
False
Countries can also specialise, leading to trade and economic benefits.
What is the main method of production that gained popularity in the US due to Henry Ford?
Conveyor belt for the production of cars
This innovation allowed for mass production and significantly increased efficiency.
What are the key components that contribute to economic production?
Factors of Production
This includes resources such as land, labor, capital, and entrepreneurship.
What is the impact of specialisation on living standards?
It has resulted in a large expansion in living standards in large parts of the world.
Specialisation allows for increased efficiency and productivity.
What problem might arise from specialisation as economies change?
Your specialist skills are no longer needed!
This highlights the risk of becoming obsolete in a changing job market.
What is essential for workers in the modern world to avoid redundancy?
Being flexible and multi-skilled
This adaptability increases job security and opportunities.
What does ‘Division of Labour’ refer to?
Breaking down the production process into a series of tasks
This allows for increased efficiency and specialization among workers.
What did the introduction of the conveyor belt signify for production methods?
It led to a more efficient and large-scale production process.
This change revolutionized manufacturing practices.
What is a drawback of specialisation and division of labour in the workplace?
Workers getting bored doing the same thing over and over again.
This can lead to decreased motivation and productivity.
