1.1.5 Specialisation and the division of labour Flashcards
1
Q
Adam Smith on specialisation and the division of labour: (2)
A
- Showed how it can increase labour productivity
- Increases efficiency and lowers cost of production
2
Q
Example of division of labour:
A
Ford and the use of the assembly line
3
Q
Specialisation and the division of labour advantages: (4)
A
- Increase in labour productivity
- higher quality of goods and services
- time is not wasted
- workers only need to be trained on one specific task saving time and money
4
Q
Specialisation and the division of labour disadvantages: (4)
A
- doing one task repetitively can be boring leading to poorer quality of work
- reduction of craftsmanship
- if one task is delayed every other task will be delayed as a result
- suffer from structural unemployment
5
Q
Medium of exchange:
A
Buy and sell goods and services
6
Q
A measure of value:
A
Compare value of two goods
7
Q
A store of value
A
it is able to keep its value and be kept for a long time
8
Q
A method for deferred payments:
A
Paying for something later (borrowing and debts)
