1.1.5- Specialisation And The Division Of Labour

Question 1

Adam smith

Answer 1

One of the founding fathers of modern economics. He discussed advantages of division of labour and how people act out of self interest which improves the public good.

Question 2

Division of labour

Answer 2

The specialisation of labour in specific tasks intended to increase productivity.

Question 3

Measure of value

Answer 3

Function of money where it can be used to judge the value of a good or service

Question 4

Medium of exchange

Answer 4

Any asset that is accepted when buying goods and services in markets

Question 5

Method of deferred payment

Answer 5

A function of money that allows for loans

Question 6

Money

Answer 6

Fulfills key functions such as a modicum of exchange, unit of account, store of value and a standard of deferred payment

Question 7

Store of value

Answer 7

A function of money in that it can be used to save and be exchanged at a later time

Question 8

Specialisation

Answer 8

A method of production where a business or area focuses on the production of a limited scope of products or services to gain greater productive efficiency