Slides in this set
What is it?
· Specialisation occurs when workers are
assigned specific tasks within production
process. Specialisation can occur between
nations, this will allow for individual countries to
produce certain goods that they are best at and
then exchange with other countries.
· The division of labour is a particular type of
specialisation where the production of a good is
broken up into many separate tasks each
performed by one person or by a small group of
· On a automobile production line
you have many different jobs that
each person does explicitly. One
person will put the seats in,
another will attach the windshield,
and a third puts on the lugnuts.…read more
·Allows workers to gain skills in a narrow ·Workers begin to take less pride in
range of tasks. their work and quality suffers, the
·It makes cost effective to provide result may be a problem of
workers with specialist tools e.g not diseconomies of scale.
every farm worker needs a tractor
·Workers may get bored, so slower
therefore it would only make sense to
give one to the one who need it. production- less efficient.
·Time saved as workers specialise tasks ·The division of labour also runs the
best suited for them. risk that if one machine breaks down
·The division of labour raises output per then the entire factory stops.
person, thereby reducing costs per unit ·Some workers receive a narrow
because lower skilled workers are easily training and may not be able to find
trained and quickly become proficient alternative jobs if they find
through constant repetition of a task themselves out of work.
`practice makes perfect' or "learning by
doing". ·Mass-produced standardized goods
·Total output of goods and services is
tend to lack variety.
raised and quality can be improved. A
higher output at lower costs means more
wants and needs might be satisfied with
a given amount of scarce resources.…read more
`Wealth of Nations' by ADAM
· Adam Smith's "Wealth of Nations" is regarded as having been the first great work
of Political Economy. It is in some ways an enhancement of his "Theory of Moral
Sentiments" in that it focuses on the problems of how people express their self-
interest and their morality. Adam Smith attempted to trace the immediate
expression of human activity and to suggest how this would change society.
· Smith saw in the division of labor and the extension of markets almost limitless
possibilities for society to expand its wealth through manufacture and trade. Wealth
consists of the goods which all the people of society consume; note all - this is a
democratic, and hence radical, philosophy of wealth. Gone is the notion of gold,
treasures, kingly hoards; gone the prerogatives of merchants or farmers or working
guilds. We are in the modern world where the flow of goods and services
consumed by everyone constitutes the ultimate aim and end of economic life.
· Although Economics has moved on in many was from the outlook and policies
endorsed in the Wealth of Nations that epoch-making publication remains as
perhaps the most famous economics book of all time. Governments in search of a
strengthening of their states through economic policy, and many individuals in
search of personal gain, have all drawn lessons from its pages. Powerful
movements that led to the emergence of Modern Capitalism were substantially
based on Smith's work and hence he deserves to be regarded as one of the most
dramatically influential philosophers or philosophic writers of modern times.…read more