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CMA Foundation · Fundamentals of Business Economics and Management · Utility, Wealth, Production

Which of the following best describes 'division of labour' in production?

Division of labour means breaking a production process into separate tasks and assigning each to a specialised worker. Specialisation improves skill and speed and so raises productivity. It does not mean sharing profits, splitting capital among products, or rotating workers between factories.

  1. ABreaking a production process into separate tasks, each performed by a specialised workerCorrect
  2. BDividing the profits of a firm equally among all workers
  3. CSplitting a firm's capital among several different products
  4. DMoving workers from one factory to another to avoid monotony

Explanation

Division of labour means splitting production into distinct operations and assigning each to workers who specialise in it, raising productivity. Profit sharing, capital allocation and job rotation are different ideas. Rotation actually works against specialisation.

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