ECONOMICS 10 REVIEW

Which of the following is a key benefit of specialization and division of labour?

• Decreased productivity

• Increased efficiency

• Higher training costs

• Reduced economic growth

In a car manufacturing plant, workers specialize in assembling specific parts of the vehicle. This is an example of:

• Division of labour

• Centralized planning

• Market failure

• Mixed economy

Which situation would most likely reduce the effectiveness of specialization?

• Workers becoming highly skilled in their tasks

• Increased training opportunities

• A lack of demand for the final product

• Automation of repetitive processes

A bakery uses specialization to improve efficiency. What is a potential drawback of this strategy?

• Increased job satisfaction

• Reduced dependency on suppliers

• Worker boredom and monotony

• Improved product quality

The primary reason why countries engage in specialization in international trade is to:

• Reduce the production of goods they are skilled at producing

• Increase their dependency on imports

• Maximize the use of their resources efficiently

• Avoid trade with other nations

Which factor could disrupt the advantages of division of labour in a factory setting?

• High worker morale

• Rapid technological advancements

• Reduced economies of scale

• Increasing global trade

Specialization leads to interdependence among individuals and countries. What is a risk associated with this?

• Decreased trade volume

• Vulnerability to supply chain disruptions

• Reduced efficiency in production

• Increased self-sufficiency

How can specialization negatively impact developing countries?

• By increasing access to global markets

• By creating dependence on primary products

• By diversifying their economies

• By improving export competitiveness

A factory producing smartphones decides to reduce the division of labour. What is the likely consequence?

• Lower productivity levels

• Greater innovation

• Higher worker satisfaction

• Increased consumer demand

Why is resource allocation often inefficient in a command economy?

• Because decisions are based on market demand

• Because government planners may lack accurate information

• Because consumers have full control over production decisions

• Because traditional methods are prioritized over innovation