Describe any five differences between capitalist and socialist economy. OR What is division of labour ? Explain its any four advantages.

OR

Division of Labour refers to the specialization of workers in specific tasks to improve efficiency and productivity. For example, in a car manufacturing plant, one worker may only assemble engines, another may fit tires, and another may handle quality checks.

Four Advantages of Division of Labour

1. Increased Efficiency Workers become highly skilled at their assigned tasks through repetition, reducing time wasted switching between jobs. For instance, a tailor focusing only on stitching will complete tasks faster than one handling all stages of garment-making.

2. Higher Productivity Specialization allows workers to use advanced tools and techniques tailored to their role. Factories using assembly lines (e.g., Ford’s Model T production) demonstrate how division of labour boosts output per worker.

3. Economies of Scale Large-scale production becomes cost-effective. Firms can invest in specialized machinery (e.g., automated sewing machines) and negotiate bulk discounts on raw materials, lowering per-unit costs.

4. Improved Quality Workers develop expertise in their niche, reducing errors. For example, a surgeon specializing in heart transplants achieves higher success rates than a general practitioner attempting the same procedure.

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Note for Examiners:

• For the capitalist vs. socialist question, the table format ensures clarity and marks are easily allocated (1 mark per difference).
• For division of labour, real-world examples (e.g., factories, healthcare) ground the answer in practical scenarios, aligning with NEB’s emphasis on application-based learning. Avoid vague statements like "it saves time"; specify how (e.g., "repetition reduces learning curves").