1.1.5 Specialisation and division of labour Flashcards

1
Q

Specialisation

A

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

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2
Q

Division of labour

A

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

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3
Q

Advantages - Increased productivity

A

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

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4
Q

Advantages - Decreased unit costs

A

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

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5
Q

Advantages - Saves training costs and time

A

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

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6
Q

Disadvantages - Higher staff turnover or absenteeism

A

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

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7
Q

Disadvantage - Dependency

A

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

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8
Q

Disadvantage - Reduces quality

A

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

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9
Q

Money

A

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

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10
Q

Characteristics of money

A

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

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11
Q

Functions of money - Medium of exchange

A

We can use money to trade goods and services

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12
Q

Functions of money - Unit of account

A

Money helps us to compare prices of different products

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13
Q

Functions of money - Store of value

A

You can store your money and save it for later

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14
Q

Functions of money - Deferred payment

A

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

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