A. Prevailing wage rate
B. Level of technology
C. Unemployment rate
D. Population size
Correct Answer:
Option B – Level of technology
Explanation
FACTORS DISCOURAGING OR LIMITING DIVISION OF LABOUR
1. The nature of goods and services: Some goods and services are suitable for large scale production while others cannot be produced on large scale.
2. Increase cost of production: If cost of production is increasing as a result of high cost of inputs, the division of labour cannot be possible.
3. Managerial ability: Managerial ability must be duplicated as the firm expands. This causes difficulties to management in organizing and coordinating the factors of production employed.
4. The size of the market :
5. Low development of distribution.
6. Government policies.
7. Where standardisation is difficult to achieve.
8. The indivisibility of work into smaller process.
9. Technological advancement
