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1.4 Production, costs and revenue

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Question 43

A manufacturing firm producing components for electric vehicles transitions from a system where individual technicians assemble entire units to a specialized assembly line.

Which of the following is the most likely consequence of implementing this division of labour?

A

An increase in workforce flexibility, as workers become highly proficient in all aspects of the assembly process.

B

A reduction in average production costs, as workers gain greater speed and dexterity through the repetition of a narrow range of tasks.

C

A decrease in the firm's reliance on exchange, as the division of labour enables complete self-sufficiency.

D

A reduction in productivity, because workers spend more time transitioning between different specialized tools.

Markscheme

1.4 Production, costs and revenue Questions

  1. A Level
  2. /Economics
  3. /1.4 Production, costs and revenue

156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.

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