1.1.5 Specialisation and division of labour

Question 1

Specialisation

Answer 1

Labour allocate all their time into producing just one good or service

Question 2

Division of labour

Answer 2

Production is broken down into different tasks and labour is allocated to each task

Question 3

Advantages - Increased productivity

Answer 3

Allows workers to become more skilled and experienced in specific tasks, leading to higher efficiency

Question 4

Advantages - Decreased unit costs

Answer 4

Specialised workers can produce more output in the same amount of time (before specialising) as they are more productive

Question 5

Advantages - Saves training costs and time

Answer 5

With specialisation firms only have to train each worker in one particular task

Question 6

Disadvantages - Higher staff turnover or absenteeism

Answer 6

Workers may find repetitive tasks monotonous and unrewarding, leading to job dissatisfaction

Question 7

Disadvantage - Dependency

Answer 7

Over-reliance on one work/task/factory makes units vulnerable to staff illness or economic shocks

Question 8

Disadvantage - Reduces quality

Answer 8

Workers specialising on just one particular task become demotivated, this leads to workers losing interest and not caring about the quality of the products they are producing

Question 9

Money

Answer 9

Anything accepted in payment of a debt; removes the need to barter

Question 10

Characteristics of money

Answer 10

-Acceptable to all
-Portable
-Easily divisible
-Durable
-Scarce in supply

Question 11

Functions of money - Medium of exchange

Answer 11

We can use money to trade goods and services

Question 12

Functions of money - Unit of account

Answer 12

Money helps us to compare prices of different products

Question 13

Functions of money - Store of value

Answer 13

You can store your money and save it for later

Question 14

Functions of money - Deferred payment

Answer 14

You can borrow money to buy goods now, and then pay the money back in the future