2.1 SPECIALISATION AND TRADE Flashcards
1
Q
when does specialisation occur
A
when economic units such as individual firms, regions or countries concentrate on producing specific goods or services
2
Q
what’s the division of labour
A
specialised use of workers within an organisation
3
Q
whats a barter system
A
people trading goods and services directly without using money
4
Q
money is more efficient than barter as it acts as
A
- a medium of exchange
- a store of value
- a unit of account
- a standard of deferred payment
5
Q
whats a medium of exchange
A
an intermediary between two parties when trading
6
Q
whats a store of value
A
when money can be kept for future use
7
Q
what’s a unit of account
A
when it allows us to measure the value of goods
8
Q
a standard of deferred payment
A
it allows us to pay for goods and services provided now and at a later date
