Question

Difficulty: MediumDivision of Labor and Specialization

A wooden furniture manufacturing company in Benin City reorganized its factory floor so that each carpenter performs only one specific task, such as cutting timber, sanding panels, or applying polish. While daily output initially increased, the firm later noticed that workers struggled to adapt when assigned to different woodworking departments or alternative industries. Which of the following represents the primary economic disadvantage illustrated in this scenario?

  1. Occupational immobility of labor resulting from over-specializationAnswer
  2. B
    An inward shift of the production possibility curve due to resource destruction
  3. C
    A rise in variable costs caused by misclassifying fixed factory inputs
  4. D
    The mandatory conversion of a private enterprise into a commercialized public corporation

Answer

Occupational immobility of labor resulting from over-specialization is the primary economic drawback, as workers acquire narrow skills that limit their ability to transition between different job roles or industries.
The correct answer highlights occupational immobility of labor. Extreme division of labor restricts workers to repetitive, single-task operations. Over time, workers lose broad trade competence and acquire rigid skills, making it difficult to transfer to alternative tasks or industries if economic conditions change.

Step-by-Step Solution

1
Analyze the production context described in the scenario.
The furniture firm divides production into narrow, isolated tasks (cutting, sanding, polishing) where workers perform only one routine operation.
Identifying the labor structure establishes that division of labor and specialization are being practiced.
2
Examine the problem arising from this specialized labor structure.
Workers become unable to adapt when transferred to other departments or alternative industries.
This loss of flexibility directly points to occupational immobility caused by overly narrow training.
3
Match the observed drawback to standard economic concepts of division of labor.
Occupational immobility of labor is a well-known disadvantage of extreme division of labor, reducing labor market flexibility.
Over-specialization causes workers to lose general craft skills, restricting their mobility across different occupations.

Key Concept

Disadvantages of Division of Labor: Occupational Immobility
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