1.1.5 - Specialisation and division of labour Flashcards
What is specialisation?
Specialisation is the production of a limited range of goods by a company/individual/country which means that trade is essential as it is the only way they are able to access all that they need.
What is the division of labour?
The division of labour is when labour becomes specialised in a particular part of the production process.
What are the 4 functions of money?
A medium of exchange=
It can be used to buy and sell goods and services and is acceptable everywhere.
A measure of value=
It can compare the value of two goods. It is also able to put a value on labour.
A store of value=
It is able to keep its value and can be kept for a long time.
A method for deferred payment=
Money can allow for debts to be created. People can therefore pay for things without having money in the present, and can pay for it later.
