Economics Chapter 15 (productivity and division of labor)

Define productivity

rate at which goods are produced, and the amount produced in relation to the work, time and money needed to produce them

List the factors affecting productivity of land

Fertilizers, Drainage, Irrigation, Reclamation, Genetically modified crops

List the factors affecting productivity of labor

Migration, Improved Motivation, Improved working practices, Training

List the factors affecting productivity of capital

Primary: Machinery, equipment
Secondary: New technology, machinery
Tertiary: Technology, Online shopping

Define division of labor

Breaking down the production parts into small parts which each worker allocated to a specific task

Define specialization

Production of a limited range of goods by an individual or firm

Explain the advantage of division of labor for workers

Focusing on the same task allows workers to become more skilled at that task and thus find employment more easily. Workers can also develop on their skills to qualify for higher paying jobs.

Explain the disadvantage of division of labor for workers

Specialization may make work boring and repetitive reducing their motivation, especially if their work requires less skill.

List the advantages of division of labor for businesses

(elephants stand tall outside) Efficiency is improved, Specialist tools can be used, Time decreases, Organization is easier

List the disadvantages of division of labor for businesses

(monkeys dodging fines) Decreased motivation lowering productivity, Dependent work on each other, Flexibility lost as nobody can replace specialized worker