1.1.5 Specialisation and the division of labour

Question 1

What is productivity

Answer 1

output per unit of output employed e.g labour productivity

Question 2

What is specialisation

Answer 2

production of a limited range of goods,
specialisation by an individual is the division of labour

Question 3

What are the advantages of specialisation

Answer 3

increased productivity, cost effective, improves skills, increases output

Question 4

Disadvantages of specialisation

Answer 4

decreases productivity if workers are sicker more damage to production, weak links in parts of business

Question 5

What is productivity determined by

Answer 5

skills of labour force, investment in quality capital, division of labour, effective management, infrastructure

Question 6

What are the functions of money

Answer 6

Medium of exchange- allows goods and services to be traded
Measure of value- allows items to be compared
Store of value- can be used now or in the future allows saving and future spending
Standard of deferred payment- expresses value of debt so loans can be paid back