Explain the contributions of enterprise and division of labor to an economy?

Answer 1

Enterprise is the risk-taking,

organising factor of production; D of L is the specialisation

of economic activity by product or process. Enterprise organises the other factors to

promote output, efficiency and change while D of L reduces cost, raises productivity

and living standards.

Answer 2

Enterprise refers to the willingness of individuals to take risks and start new businesses, which leads to innovation, job creation, and economic growth. Division of labor involves breaking down the production process into specialized tasks, allowing workers to focus on what they do best and increase overall efficiency. Together, enterprise and division of labor drive economic development by promoting specialization, productivity, and the efficient allocation of resources within an economy.