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Question
Give any five differences between product and process-based division of labour.
Distinguish Between
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Solution
| Product-based division of labour | Process-based division of labour |
| When a worker does the entire process of production of a single good or service himself or collectively by the members of the family. | When the process of producing a good is divided into different operations and each worker does one or a few operations. |
| When a person specialises in the production of a particular good or service. | When a person specialises in a particular process of the production of a good or service. |
| It is also known as a simple division of labour. | It is also known as a complex division of labour. |
| It is found in small businesses. | It is found in large enterprises. |
| It is based on the labour-intensive technique of production. | It is based on a capital-intensive technique of production. |
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Chapter 1: Factors of Production - Exercise [Page 31]
