Economics

Student Videos

Division of Labour (Labour Markets)

Level:
GCSE, AS, A Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

The division of labour occurs where production is broken down into many separate tasks.

The division of labour
  • The division of labour occurs where production is broken down into many separate tasks
  • Division of labour can raise output per person as people become proficient through constant repetition of a task
  • This is called “learning by doing”
  • This gain in labour productivity helps to lower the supply cost per unit
  • Reduced supply costs in theory will lead to lower prices for consumers of goods and services causing gains in economic welfare e.g. through an increase in consumer surplus

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