1.1.5

Question 1

What is specialisation/division of labour?

Answer 1

This is when production is broken down into specific tasks on the production process.

Question 2

Who is the economist who came up with specialisation/division of labour?

Answer 2

Adam Smith.

Question 3

Name 2 advantages of the division of labour

Answer 3

• Production increases
• Less wastage
• Output increases
• Increased productivity

Question 4

Name 2 disadvatanges of division of labour

Answer 4

• Alienation of the workforce
• Risk of structural unemployment
• Specialisaed sequential production may lead to halted production

Question 5

Name 3 of the 4 functions of money

Answer 5

• Store of value
• Measure of value
• Medium of exchange
• Method of deferred payment

Question 6

What’s a store of value?

Answer 6

The function that allows money to be saved or exchanged in the future without deteriorating in value.

Question 7

What’s a measure of value?

Answer 7

The function that allows value of different goods and services to be compared.

Question 8

What’s a medium of exchange?

Answer 8

The function that allows money to be widely accepted for payment of debt/goods.

Question 9

What’s a method of deffered payment?

Answer 9

The function that money can be used to pay back debt.

Is closely related to unit of account.