Scarcity and Choice MCQ

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

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