Question

Division of labour is considered to be the central feature of a modern economy. Explain its impact on the production structure of an economy.

Answer 1

Division of labour is considered to be the central feature of a modern economy.a) Augment in manufacture: With the adoption of division of labour, the total manufacture augments. Adam Smith has explained in his work the advantage of division of labour.

b) Efficiency of labour: With such division, a worker has to do the same work time and again and he gets specialisation in it. It is in this way, the division of labour leads to a great augment in efficiency.

c) Employment opportunities: Division of labour guides to the diversity of job opportunities which further leads to the employment opportunities. Alternatively, the scale of manufacture being large, the number of employment opportunities also augments.