1.5 Specialisation & Division of Labour Flashcards
1
Q
What is specialisation?
A
Concentrate scarce resources into a specific task
2
Q
Advantages of specialisation?
A
1) Higher output
2) Variety
3) Economies of scale
3
Q
Disadvantages of specialisation?
A
1) Structural unemployment
2) Over-specialisation
3) Standardised goods
4
Q
What is the division of labour?
A
Production process is broken down into many separate tasks
5
Q
Advantages of division of labour?
A
1) Increased productivity
2) Lower cost per unit
3) Lower prices
6
Q
Drawbacks of division of labour?
A
1) Lower motivation
2) Lower quality
3) Absenteeism
7
Q
Main functions of money?
A
1) Medium of exchange
2) Store of value
3) Unit of account
4) Standard of deferred payment
8
Q
Key characteristics of money?
A
1) Durable
2) Portable
3) Divisible
4) Hard to counterfeit
