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Scarcity and Choice

Specialisation, division of labour and exchange: Productivity

  • 3 things to know
  • AS Units 1 and 2

Overview

Recall questions on Productivity.

What you need to know

Answer each one before you reveal it.

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Key term

What benefits does specialisation bring to individual workers?

Key term

Why does avoiding task-switching increase productivity under specialisation?

Key term

How does investment in capital equipment increase productivity?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Explain the mechanism by which practice and repetition under specialisation raise productivity.

    Model answer

    Workers who repeatedly perform the same task develop greater skill and expertise through practice, enabling them to work faster and make fewer errors.

  2. 2

    Why does avoiding task-switching increase productivity under specialisation?

    Model answer

    Less time is wasted moving between different tasks or changing tools and equipment, allowing workers to spend more time on productive activity.

  3. 3

    How does specialisation facilitate the use of specialised machinery?

    Model answer

    When production is divided into specific tasks, it becomes economically viable to employ specialised machinery and capital equipment suited to those particular tasks, boosting output.

  4. 4

    How does investment in capital equipment increase productivity?

    Model answer

    Capital equipment allows workers to produce more output per hour by automating processes, increasing precision, and reducing manual effort.

  5. 5

    In what way does technological innovation raise productivity?

    Model answer

    Technological innovation introduces new methods, processes, or products that enable more efficient production, increasing output per unit of input.

  6. 6

    How does improved education and training contribute to higher productivity?

    Model answer

    Better education and training enhance workers' skills, knowledge, and capabilities, enabling them to work more efficiently and produce higher quality output.

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AThe demand curve shifts to the left.
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Actual growth means a realised increase in output.
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