Question 8
What is a disadvantage to employers of switching to production using division of labour?
average cost decreases
flexibility of workers is lost
repetition of tasks saves time
training time decreases
• definition of division of labour (worker specialisation)
• advantages and disadvantages of division of labour
What is a disadvantage to employers of switching to production using division of labour?
average cost decreases
flexibility of workers is lost
repetition of tasks saves time
training time decreases
The economic problem results in choices and opportunity cost. People have to decide what job to do and where to live. In recent years Australia has recruited teachers from a number of countries including Canada, the UK and the US. Most of these teachers specialise in a single subject.
Discuss whether or not a teacher would benefit from specialisation.
A firm changes from producing individual pieces of wooden furniture by hand to a mechanised production process using the division of labour.
What is the most likely set of outcomes as a result?
outcome 1
outcome 2
outcome 3
worker motivation
will increase
average total cost
will increase
total costs will
increase
worker motivation
will decrease
average total cost
will increase
total costs will
increase
worker motivation
will decrease
average total cost
will decrease
total costs will
increase
worker motivation
will decrease
average total cost
will decrease
total costs will
decrease
What benefit is likely to result from the extension of specialisation within manufacturing?
For a consumer, there are more individually made goods available.
For a consumer, there could be a lower cost of living.
For an employee, job satisfaction will increase.
For an employee, the nature of work is more varied.
Which effect of increased specialisation by firms and workers is most likely to cause problems for an economy?
better product quality
greater interdependence
higher productivity
improved resource allocation
Which disadvantage is likely to result from increased division of labour within manufacturing?
For a consumer, there are more handmade goods.
For a consumer, there is an increase in the quality of goods.
For an employee, job security will increase.
For an employee, the nature of their work is less varied.
In 2022, Paraguay's production possibility curve (PPC) shifted to the right. Paraguay has a mixed economic system. Its government provides merit goods and public goods. The country's private sector is a major producer of shampoo. The firms in the shampoo industry make use of division of labour. There are several firms in the industry, but the number is declining. There is a possibility that soon there may be just one firm in the industry.
Analyse how division of labour can benefit firms.
Central banks influence their countries' money supply. Central banks also regulate commercial banks. Households benefit from these commercial banks in several ways. In recent years, commercial banks have introduced new technology. Global online banking increased by 14% between 2019 and 2022. These advances in technology were combined with a greater use of division of labour.
Discuss whether or not division of labour will benefit workers.
In Norway, more than 60\% of new cars sold are electric cars. The production of electric cars makes extensive use of the division of labour. Some people save to buy a car. However, saving in Norway fell from 13\% of disposable income in 2021 to 5\% in 2023. The country also experienced changes in the types of jobs in which people were employed. For example, there was a decline in the number of people deciding to become teachers.
Define 'division of labour'.
There is a high level of division of labour in the United Kingdom (UK) energy industry. Cold weather in early 2018 caused very high demand for energy and a change in its price. This led to a temporary shortage of energy for firms and households in the UK. Part of the change in price may have been the result of UK energy firms abusing their monopoly power. This would be an example of market failure.
Discuss whether or not workers benefit from division of labour.