ICSE Class X Economics 2018 Solved Papers

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Question : 1
Total: 35
SECTION - I

Give two reasons as to why the division of labour is an advantage to the producer?
Solution:  
Division of labour is an advantage to producers, due to the following reasons :
(i) Increase in production : With the specialization (division of labour) the workers become more skilled and efficient. They acquire higher speed in work output, which ultimately results in increase in the quantity and quality of production.
(ii) Reduction in cost of production : The specialized workers with the help of machines are able to produce more quantity of goods in less time with minimum wastage which results in large scale production. Hence, cost of production minimises.
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