Specialization of labour leads to
A) gains in absolute efficiency only.
B) gains in the relative efficiency of each worker only.
C) gains in both absolute efficiency and in the relative efficiency of each worker.
D) no gains in efficiency.
E) a reduction in efficiency.

Question

Quizplus · Accepted Answer

Specialization of labour leads to gains in both absolute efficiency and in the relative efficiency of each worker. Absolute efficiency is gained because workers become more skilled in their specific tasks and can complete them more quickly and with fewer errors. Relative efficiency is gained because each worker can focus on their specialized task, leading to an overall increase in productivity and output.

Specialization of Labour Leads to