Live revision! Join us for our free exam revision livestreams Watch now

Topic Videos

Division of Labour (Labour Markets)

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

Last updated 3 Jul 2020

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

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.