Fig. 3 shows output records from a repair workshop that restores electric bicycles. In January, the owner asked one technician to focus only on diagnosing b...

Assessment: Economics 4EC1 | Paper 1 Mock 01 | Written Paper 1 Subject: Economics - 4EC1

Question 1 Report

Fig. 3 shows output records from a repair workshop that restores electric bicycles. In January, the owner asked one technician to focus only on diagnosing battery faults. Other technicians specialised in brakes, motors and final safety checks. The figure tracks the number of bicycles repaired per technician during the first six months. The firm did not increase the number of staff, although it bought a set of diagnostic tablets in April. Managers are considering using the same method in a new workshop. They need to decide whether the rising figure proves that division of labour is the main cause of higher productivity.

MonthBicycles repaired per technician010203040JanFebMarAprMayJunDiagnostic tablets introducedFig. 3: Workshop productivity data© EAGLE BEACON GLOBAL

The workshop operates in a local service sector where customers compare repair prices and waiting times. The owner is also concerned that excessive specialisation may leave the firm vulnerable when a technician is absent.

(a) What was the number of bicycles repaired per technician in June? [2]
(b) Describe the trend in labour productivity between January and June. [3]
(c) Explain why specialisation may reduce the time taken to repair each bicycle. [4]
(d) Explain why Fig. 3 does not prove that division of labour alone caused the increase in productivity. [5]
(e) Which risk could arise if each technician is trained in only one repair task? Explain how the firm could reduce this risk. [6]

Answer Details

(a) In June, each technician repaired 32 bicycles. [2]

(b) Labour productivity rose throughout the period, from 10 bicycles per technician in January to 32 in June. [3]

(c) Specialisation lets technicians repeat one task and develop skill and experience. They can diagnose or repair faults more quickly. They also spend less time switching tools or learning every stage of a repair. Consequently, more bicycles can be completed in a given time. [4]

(d) The graph does not prove that division of labour alone caused the increase. Diagnostic tablets were introduced in April, and these may have made diagnosis faster or more accurate. Productivity was already rising before April, but the graph cannot separate the effects of specialisation from training, worker effort, demand or the tablets. The relationship is correlation, not proof of one cause. [5]

(e) If each technician can do only one task, the absence of one specialist can stop or delay that stage. This creates a bottleneck, reducing total repairs and possibly customer satisfaction because waiting times rise. The firm can reduce this risk by cross-training workers, so another technician can cover an absent specialist while the workshop still retains some benefits of specialisation. [6]

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