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Questions and Answers
Which of the following is a disadvantage of specialization?
Which of the following is a disadvantage of specialization?
What happens when one specialist worker is absent in a production process?
What happens when one specialist worker is absent in a production process?
What is the effect of breakdown of machinery at one stage in a production process?
What is the effect of breakdown of machinery at one stage in a production process?
What is a consequence of a country's dependence on other countries?
What is a consequence of a country's dependence on other countries?
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What is an indication of high standards of living in a community?
What is an indication of high standards of living in a community?
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What is a factor that contributes to low standards of living?
What is a factor that contributes to low standards of living?
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Which of the following is NOT a disadvantage of specialization?
Which of the following is NOT a disadvantage of specialization?
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What is the result of scarcity of essential goods and services on standards of living?
What is the result of scarcity of essential goods and services on standards of living?
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How does a poorly developed road and communication network affect living standards?
How does a poorly developed road and communication network affect living standards?
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What impact does access to essential social amenities have on people's living standards?
What impact does access to essential social amenities have on people's living standards?
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What is the relationship between political stability and economic activities?
What is the relationship between political stability and economic activities?
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Which level of production involves converting raw materials into finished goods?
Which level of production involves converting raw materials into finished goods?
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What does an increase in per capita income indicate about a country's living standards?
What does an increase in per capita income indicate about a country's living standards?
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Which of the following factors can hinder access to essential goods and services?
Which of the following factors can hinder access to essential goods and services?
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When does production end?
When does production end?
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What is the term for increasing the usefulness of goods and services?
What is the term for increasing the usefulness of goods and services?
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Which of the following best represents primary production?
Which of the following best represents primary production?
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At which level of production do we find bread-baking?
At which level of production do we find bread-baking?
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What can result from low per capita income in a country?
What can result from low per capita income in a country?
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What is the term for income per head in a country?
What is the term for income per head in a country?
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Which factor does NOT directly affect living standards?
Which factor does NOT directly affect living standards?
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What type of production is a farmer engaging in when producing maize for their family?
What type of production is a farmer engaging in when producing maize for their family?
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What is the type of specialization where an individual or organization concentrates on one type of product?
What is the type of specialization where an individual or organization concentrates on one type of product?
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Which of the following services is not regarded as a direct service?
Which of the following services is not regarded as a direct service?
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What type of demand is satisfied when a commodity meets human wants directly?
What type of demand is satisfied when a commodity meets human wants directly?
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What is the law of supply?
What is the law of supply?
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What does a supply schedule illustrate?
What does a supply schedule illustrate?
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What happens to the supply of a commodity when its price increases?
What happens to the supply of a commodity when its price increases?
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What is the quantity of a commodity that sellers are willing and able to take to the market?
What is the quantity of a commodity that sellers are willing and able to take to the market?
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What is shown in the table below?
What is shown in the table below?
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What happens to the supply of a commodity when its price reduces?
What happens to the supply of a commodity when its price reduces?
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What is the term for 'other things constant' in economics?
What is the term for 'other things constant' in economics?
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Which of the following is NOT a disadvantage of firm localization?
Which of the following is NOT a disadvantage of firm localization?
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What is delocalization of firms?
What is delocalization of firms?
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Which of the following factors is LEAST likely to influence the delocalization of firms?
Which of the following factors is LEAST likely to influence the delocalization of firms?
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Which of the following is NOT an advantage of delocalization?
Which of the following is NOT an advantage of delocalization?
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What is one of the main reasons why firms may delocalize?
What is one of the main reasons why firms may delocalize?
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Which of the following statements is TRUE regarding the relationship between localization and delocalization?
Which of the following statements is TRUE regarding the relationship between localization and delocalization?
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Why might a government encourage delocalization?
Why might a government encourage delocalization?
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What is the primary benefit of delocalization for workers in rural areas?
What is the primary benefit of delocalization for workers in rural areas?
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Study Notes
Disadvantages of Localization
- May lead to depletion/exhaustion of a country's natural resources due to over exploitation
- The absence of one specialist worker brings the whole production process to a halt
- Break down of machinery at one stage brings the entire production process to a standstill
- Makes a worker dependent on one trade only
- Encourages the use of machines leading to unemployment
- Makes a country dependent on other countries
- Brings many people together which may lead to social problems such as crimes and prostitution
Standards of Living
- Refers to a relative measure of the quality of life of people in a given community or society
- Standard of living is said to be high if majority of people in the community have access to basic needs, education, and healthcare
- Lack of access to the three is an indication of low standards of living
Factors affecting Standards of Living
- Cost of living: High cost of living denies low-income earners access to basic needs leading to low standards of living
- Access to goods and services: Scarcity of essential goods and services can contribute to low standards of living
- Availability of job opportunities: When people lack jobs, they lack a source of income hence unable to make a living leading to low standards of living
- Roads and communication network: Poorly developed roads and communication system/network prevent access to essential goods and services leading to low standards of living
- Access to social amenities: Lack of essential social amenities like schools and hospitals deny people access to education and medical services leading to low living standards
- Political stability/security: Political stability/security promotes carrying out of economic activities leading to enhanced living standards
- Per capita income: Increase in a country's per capita income can lead to improved standards of living as it will imply an increase in the average income earned by people in a country
Production
- Primary production: Involved in mining, quarry or fishing
- Secondary production: Converts raw materials into finished goods
- Tertiary production: Provides services to consumers
Specialization
- Specialization by commodity: Concentrates on production of one type of product
- Direct demand: A commodity satisfies human wants directly, its demand is known as direct demand
- Supply: The quantity of a commodity that sellers are willing and able to take to the market (offer for sale) at a particular price over a given period of time
- Law of supply: States that, other things constant, when the price of a commodity increases its supply also increases and when the price of a commodity reduces its supply also reduces
- Supply schedule: A list of the prices of a commodity against quantities supplied
Localization vs Delocalization
- Localization: Establishment of firms in a specific area or region
- Disadvantages of localization: Economic depression during times of war or calamities, leads to widespread unemployment
- Delocalization: Establishment of firms in different parts of a country
- Factors affecting delocalization of firms: Lack of adequate land in urban centers, government policy aimed at ensuring balanced regional development, availability of auxiliary services, availability of raw materials, availability of a large population, and availability of adequate labour
- Advantages of delocalization: Employment opportunities, reduces rural to urban migration, balanced regional development, and increased accessibility of produced goods
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Description
This quiz covers the negative consequences of dividing labour in production, including resource depletion, unemployment, and social problems.