Scarcity and Choice SAQ

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is specialisation of labour?

The separation of a work process into a number of tasks, with each task carried out by a separate worker or group of workers.

What is one advantage of specialisation of labour?

Workers become more efficient, producing each unit at a lower cost per unit, with no time wasted.

What is a disadvantage of specialisation of labour?

Tasks can become repetitive, leading to decreased staff morale and motivation, and subsequently decreased productivity.

What is scarcity in economics?

The gap between limited resources and unlimited wants. Signup and view all the answers

What is opportunity cost?

The best alternative foregone when a choice is made. Signup and view all the answers

What does microeconomics study?

The behaviour and decisions of individuals and firms. Signup and view all the answers

What does macroeconomics study?

The behaviour and decisions of governments and countries, looking at the economy as a whole. Signup and view all the answers

How does microeconomics approach the study of unemployment?

By looking at the factors that an individual would consider when deciding whether or not to apply for a particular job. Signup and view all the answers

How does macroeconomics approach the study of unemployment?

By looking at a number of policies the government could pursue that would result in a general fall in unemployment across the country. Signup and view all the answers

How does specialisation of labour lead to increased efficiency?

Workers become more efficient because they are able to focus on a single task, wasting no time and producing more output per unit. Signup and view all the answers

What is the impact of repetitive tasks on worker morale and motivation in a specialised work environment?

Repetitive tasks can lead to decreased staff morale and motivation, which can ultimately decrease productivity. Signup and view all the answers

Why might specialisation of labour limit an individual's career progression opportunities?

Specialisation of labour limits an individual's career progression opportunities because they only develop a narrow range of skills. Signup and view all the answers

How does the concept of scarcity relate to the fundamental problem of economics?

Scarcity refers to the gap between limited resources and unlimited wants, which is the fundamental problem of economics. Signup and view all the answers

What is the opportunity cost of choosing one option over another?

The opportunity cost is the best alternative foregone when a choice is made. Signup and view all the answers

How does microeconomics differ from macroeconomics in its approach to studying economic decisions?

Microeconomics analyses the behaviour and decisions of individuals and firms, while macroeconomics studies the behaviour and decisions of governments and countries. Signup and view all the answers

What is the primary focus of microeconomic analysis when examining unemployment?

Microeconomics focuses on the factors that an individual would consider when deciding whether or not to apply for a particular job. Signup and view all the answers

What is the primary focus of macroeconomic analysis when examining unemployment?

Macroeconomics focuses on the policies that governments could pursue to result in a general fall in unemployment across the country. Signup and view all the answers

Why is specialisation of labour not always beneficial for workers?

Specialisation of labour is not always beneficial for workers because it can lead to repetitive tasks, limited career progression, and vulnerability to unemployment. Signup and view all the answers

Study Notes

Specialisation of Labour

Division of work into separate tasks, each performed by a distinct worker or group of workers
Advantages of specialisation:
- Increased efficiency and lower production costs due to reduced time wastage
- Improved productivity and higher output, leading to greater profits
- Lower training costs as employees only need to master a narrow range of tasks
Disadvantages of specialisation:
- Repetitive tasks can lead to decreased staff morale, motivation, and productivity
- Limited career progression opportunities for individual workers
- Narrow skill set makes it difficult for workers to find alternative employment if unemployed

Scarcity and Opportunity Cost

Scarcity: the fundamental economic problem of limited resources versus unlimited wants
Opportunity cost: the best alternative forgone when a choice is made

Microeconomics vs Macroeconomics

Microeconomics:
- Analyzes individual and firm behaviour and decision-making
- Focuses on specific markets and individual economic units
- Examines factors influencing individual choices, such as job application decisions
Macroeconomics:
- Studies the behaviour and decision-making of governments and countries
- Examines the economy as a whole, focusing on aggregates and averages
- Analyzes government policies and their impact on the overall economy, such as policies to reduce unemployment

Specialisation of Labour

Division of work into separate tasks, each performed by a distinct worker or group of workers
Advantages of specialisation:
- Increased efficiency and lower production costs due to reduced time wastage
- Improved productivity and higher output, leading to greater profits
- Lower training costs as employees only need to master a narrow range of tasks
Disadvantages of specialisation:
- Repetitive tasks can lead to decreased staff morale, motivation, and productivity
- Limited career progression opportunities for individual workers
- Narrow skill set makes it difficult for workers to find alternative employment if unemployed

Scarcity and Opportunity Cost

Scarcity: the fundamental economic problem of limited resources versus unlimited wants
Opportunity cost: the best alternative forgone when a choice is made

Microeconomics vs Macroeconomics

Microeconomics:
- Analyzes individual and firm behaviour and decision-making
- Focuses on specific markets and individual economic units
- Examines factors influencing individual choices, such as job application decisions
Macroeconomics:
- Studies the behaviour and decision-making of governments and countries
- Examines the economy as a whole, focusing on aggregates and averages
- Analyzes government policies and their impact on the overall economy, such as policies to reduce unemployment

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Understand the concept of specialization of labour in economics, its advantages and disadvantages. Learn how it improves efficiency, productivity and profits, and reduces training costs.