Scarcity and Choice MCQ
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Questions and Answers

What does specialisation of labour involve?

  • Dividing a work process into a single task for all workers
  • Assigning all tasks to a single worker
  • Combining multiple work processes into one task
  • Separating a work process into a number of tasks, with each task carried out by a separate worker or group of workers (correct)

    • What is an advantage of specialisation of labour?

  • Increased career progression opportunities
  • Lower training costs (correct)
  • Less efficient production
  • Higher staff morale

    • What is a potential disadvantage of specialisation of labour?

  • Higher training costs
  • Higher staff morale
  • Repetitive tasks leading to decreased staff morale (correct)
  • Increased productivity

    • What is another consequence of specialisation of labour?

    <p>Workers have little chance of career progression</p> Signup and view all the answers

    Why might a worker who is specialised in a particular task struggle to find alternative employment?

    <p>They have a narrow range of skills</p> Signup and view all the answers

    What is the fundamental concept represented by the idea of scarcity?

    <p>Limited resources and unlimited wants</p> Signup and view all the answers

    What is the opportunity cost of a decision?

    <p>The best alternative foregone</p> Signup and view all the answers

    Which of the following statements is true about unlimited wants?

    <p>They are never ending</p> Signup and view all the answers

    What is the main reason for the existence of scarcity?

    <p>Limited resources</p> Signup and view all the answers

    What happens when individuals make a choice?

    <p>They lose the best alternative</p> Signup and view all the answers

    Which aspect of unemployment is studied in microeconomics?

    <p>Factors affecting an individual's decision to apply for a job</p> Signup and view all the answers

    What is the primary focus of macroeconomics?

    <p>The economy as a whole and government decisions</p> Signup and view all the answers

    In which field of study would you analyse the decisions of governments and countries?

    <p>Macroeconomics</p> Signup and view all the answers

    What is the key difference between microeconomics and macroeconomics?

    <p>Microeconomics focuses on individuals, while macroeconomics focuses on the economy as a whole</p> Signup and view all the answers

    In the context of unemployment, which level of analysis is concerned with the factors affecting an individual's decision to apply for a job?

    <p>Microeconomic level</p> Signup and view all the answers

    Study Notes

    Specialisation of Labour

    • Separation of a work process into multiple tasks, each carried out by a separate worker or group of workers.

    Advantages of Specialisation

    • Increased efficiency: each unit produced at a lower cost per unit, with no time wasted.
    • Improved productivity: workers get better at their tasks, leading to higher output and profits.
    • Reduced training costs: employees only need to learn a narrow range of tasks.

    Disadvantages of Specialisation

    • Repetitive tasks can lead to decreased staff morale and motivation, resulting in decreased productivity.
    • Limited career progression opportunities for individual workers.
    • Narrow skill set makes it difficult for workers to find alternative employment if they become unemployed.

    Microeconomics vs Macroeconomics

    • Microeconomics focuses on the behavior and decisions of individuals and firms.
    • It analyzes individual economic units, such as households, businesses, and markets.
    • In microeconomics, the study of unemployment involves examining the factors that influence an individual's decision to apply for a job.

    Macroeconomics

    • Macroeconomics examines the behavior and decisions of governments and countries.
    • It studies the economy as a whole, looking at aggregate variables such as national income, employment, and inflation.
    • In macroeconomics, the study of unemployment involves analyzing government policies that can lead to a general decline in unemployment across the country.

    Specialisation of Labour

    • Separation of a work process into multiple tasks, with each task carried out by a separate worker or group of workers
    • Advantages:
      • Increased efficiency: each unit produced at a lower cost per unit, with no time wasted
      • Improved productivity: workers become better at their tasks, output increases, and profits rise
      • Lower training costs: employees only need to learn a narrow range of tasks
    • Disadvantages:
      • Repetitive tasks lead to decreased staff morale and motivation, reducing productivity
      • Limited career progression opportunities for individual workers
      • Narrow skill set makes it harder for workers to find alternative employment if unemployed

    Scarcity and Opportunity Cost

    • Scarcity: the gap between limited resources and unlimited wants
    • Opportunity cost: the best alternative given up when a choice is made

    Microeconomics vs Macroeconomics

    • Microeconomics:
      • Analyzes the behaviour and decisions of individuals and firms
      • Examines specific factors influencing individual choices, such as job application decisions
    • Macroeconomics:
      • Studies the behaviour and decisions of governments and countries
      • Examines the economy as a whole, including policies affecting national unemployment rates

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    Description

    Learn about the concept of specialisation of labour, its advantages such as increased efficiency and productivity, and its disadvantages.

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