CMA Foundation · Fundamentals of Business Economics and Management · Means of Production
In a garment unit in Tiruppur, the making of a shirt is broken into separate tasks such as cutting, stitching, buttoning and ironing, and each worker is assigned only one task. This arrangement is best described as:
This is division of labour, because the production of a shirt is split into distinct tasks and each worker performs only one of them. The other options deal with returns to inputs, consumer benefit or vertical integration, not task allocation among workers.
- ADivision of labourCorrect
- BLaw of diminishing returns
- CConsumer surplus
- DBackward integration
Explanation
Splitting a production process into separate tasks, each done by a different worker, is the definition of division of labour. Diminishing returns concerns output when a variable input is added to fixed inputs, and consumer surplus and backward integration are unrelated to task allocation.
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