ECONOMICS

1. ECONOMICS

2. Division of labour Division of labour means that a worker specializes in producing a good or a part of a good. There are THREE types of division of labour: Simple division of labour It occurs when different workers specialize in producing a particular good or service, e.g. a farmer, a tailor or a teacher. Complex division of labour It occurs when different workers specialize in different sub-processes in the production of a good, e.g. in a school, different teachers teach different subject. Regional and international division of labour It occurs when different regions or countries specialize in the production of different goods. E.g. coffee in Brazil.

3. Advantages of division of labour: • To the employer: • Raise the productivity: • a. People specialize in the job that they can do best. • b. Practice makes perfect. Through repetition, workers • become more skilful. • c. Division of labour reduces training time for each • worker.

4. Advantages of division of labour: To the workers:: 1. Each worker can specialize according to his ability and particular skills. 2. It saves more time in learning just a job. 3. The worker may experience less fatigue in doing repetitive job.

5. Advantages of division of labour: • To the society; • Division of labour allows a country to enjoy comparative advantage. When production is • specialized ,Productively is raised.More and a greater variety of goods will be produced. • With international trade and with division of labour,each participating country can enlarge its range of consumption pattern and enhance its total consumption.Thus the living standard is raised for all people. • A certain country or district may develop • its fame for certain country.

6. Disadvantages of division of labour: • To the workers: • Keep on doing the same job would lead to monotony. • Monotonous(dull) work reduces productivity. Workers • have less job satisfaction when they repeated the same • kind of job. • The use of machinery leads to a loss of skill and workmanship. • There is little or no craftsmanship since the production of an • article is divided into many tasks. • Workers do not have any sense of achievement.

7. Supply of labour= number of workers X hours of work What is Labour? Labour refers to human efforts, both mental and physical that are employed in production, e.g. a waitress, a saleslady, a clerk, a manager or a teacher. Labour means the input provided by the labour force. The supply of labour is measured in terms of man-hours/ man-days available for production, i.e.

8. Average Product= Total Output or Total value of Output Units of Labour (in man- hours) Productivity of labour Factors affecting the productivity of labour : Education and Training Technical education and on-the-job training improves workers’ technical know-how. Workers can produce more output. Working environment  Workers can work better in a clean and tidy working environment with air-conditioning and good lighting.

9. What is Capital???????????????? Capital refers to man-made resources used for assisting production. They include (1) all the capital goods (tools & machines), (2) raw materials & semi-finished goods, (3) unsold finished goods and (4) money held by producers. Capital increases the productivity of other factors of production and increases the output level of production. It can be used to substitute and/or complement other factors of production, e.g. the use of machines can help to produce more output in a short time.

10. What is ‘Land’ in the economic ??? In the economic, Land refers to all kinds of natural resources, e.g, oceans and woodlands. Land is a gift of nature. The creation of land does not use up any scarce resource. Land is fixed in supply. The amount of natural resources is fixed in supply. We cannot change the supply of land but the supply of land for a particular use is not fixed. Land is geographically immobile/ immovable. The location of land is decided by nature. If it is moved by human efforts, it is not land any more. For example: The ‘land’ in its natural state. However, when they are irrigated and modified by man. Scarce resources are used to make it available for production, so it is not land any more.

11. Input –output relationship in short run Factors of production can also be classified as: • Fixed factors – Employment of such factors of production does not change with the level of output. These factors cannot be easily increased or decreased within a short period of time. • Variable factors – Employment of such factors of production increases/ decreases with the level of output. These factors can be increased/ decreased easily within a short period of time

12. The Law of diminishing returns It states that, in short run, when variable factors are added continuously to the fixed factors, holding technology constant, the marginal product will eventually decrease. The initial increase in marginal product is due to more intensive use of the fixed factors of production, division of labour and special specialization. When more/ variable factors are used, the workshop will become overcrowded, fixed factors are inadequate and the normal production process will be disturbed . Consequently, less marginal product will be produced. Long run is defined as a period that is long enough for a firm to vary all its factors of production. In long run, all factors are variable and a firm can increase its output by employing all factors.

13. Machine Worker TP AP MP 5 0 0 - 5 1 15 15 15 5 2 36 18 21 5 3 57 19 21 5 4 84 21 27 5 5 65 13 -19 TOY PRODUCTION

14. Group Members 4A: Cherry Lam ( 13 ) Crystal Lam ( 14 ) Doris Sing ( 26 ) Angle Wu ( 38 )