JAMB Commerce 2000 Question 3

Question 3

Production

The application of division of labour should generally bring about

  1. A.increase in the quantity of goods and services
  2. B.increase in the variety of goods and services
  3. C.cheapness of goods and services
  4. D.cost efficiency in the production of goods and services.
Show the answer and explanation

Answer: A (increase in the quantity of goods and services)

Explanation

Division of labour lets each worker specialise and become faster, so total output rises.