1.1.5 Specialisation & the Division of Labour Flashcards
1
Q
Define division of labour
Adam Smith and his pin factory
A
Where the production process is broken down and split up into different tasks carried out by different individuals.
2
Q
Define Specialisation
A
Where a country, regoin or firm concentrate in one area to increase productivity and gain profits.
3
Q
What is one main function of money?
A
Money is used as a medium of exchange meaning it facilitates transactions between buyers and sellers
4
Q
What is one characteristic of money?
A
It generally holds its value over a period of time and doesnt drastically change even in times of hyper-inflation.
