Which economic concept explains improved efficiency when tasks are divided among workers?

• A. Division of labor
• B. Capital accumulation
• C. Scarcity
• D. Command economy

Answer: (A)

The concept being tested is division of labor. When production is divided into specialized tasks performed by different workers, each person can focus on a narrow set of activities. This builds speed and accuracy through repetition, reduces downtime between tasks, and makes it easier to use tools or machinery designed for specific steps. The result is higher total output with less wasted time, which shows why efficiency improves when work is split among workers. A classic example is a pin factory where one person handles wire, another cuts and shapes parts, and a third assembles the finished product; together they produce far more than if one person did every step. The other choices describe different ideas: accumulating capital means more resources, scarcity refers to limited resources, and a command economy is about who makes decisions and allocates resources, not the efficiency gain from splitting work.