One of the factors limiting the effectiveness of division of labour in the production process is the?

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