2.1 Specialisation And Trade Flashcards
1
Q
What is division of labour?
A
division of labour - where the production process is broken down into stages and workers are assigned different tasks
2
Q
What is specialisation ?
A
where an individual worker, firm, region or country produce a limited range goods or services which they are best at producing
3
Q
What is an example of specialisation using PPC ?
A
4
Q
What are the advantages and disadvantages of specialisation ?
A
5
Q
What is a barter system ?
A
- barter is trade/exchange of goods or services for other goods or services, without using a medium of exchange
- for a barter to occur, there needs to be a specific direct double coincidence of wants of the 2 trading parties
- this is why we use money as a medium of exchange where money is commonly accepted in return for provision of goods and services
