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?
An increase in workforce flexibility, as workers become highly proficient in all aspects of the assembly process.
A reduction in average production costs, as workers gain greater speed and dexterity through the repetition of a narrow range of tasks.
A decrease in the firm's reliance on exchange, as the division of labour enables complete self-sufficiency.
A reduction in productivity, because workers spend more time transitioning between different specialized tools.
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.