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JAMB Economics 1981 Question 8

Question 8

Theory of Production

Which of the following is NOT true about specialization or division of labour?

  1. A.Specialization and exchange go hand in hand
  2. B.Specialization implies that each person produces a surplus of one or a few items (e.g commodities) in which he is specialized
  3. C.Division of labour need not take account of the extent of the market
  4. D.Division of labour results in increased productivity
  5. E.Division of labour involves the danger of unemployment.
Show the answer and explanation

Answer: C (Division of labour need not take account of the extent of the market)

Explanation

Division of labour is limited by the size of the market, so it must take the market into account.