CHAPTER 5 SPECIALISATION AND THE DIVISION OF LABOUR

Question 1

Barter

Answer 1

Swapping one good for another without the use of money.

Question 2

Capital productivity

Answer 2

Output per unit of capital unemployment

Question 3

Division of labour

Answer 3

Sepecialisation by workers, who preform different tasks at different stages of production to make a good or service , in co-operation with other workers.

Question 4

Labour productivity

Answer 4

Output per worker

Question 5

Market

Answer 5

Any convenient set of arrangements by which buyers and sellers communicate to exchange goods and services.

Question 6

Money

Answer 6

Any item,such as a coin or a bank balance, which fulfills four functions: a medium of exchange, a measure of value , a store value and a method of deferred payment.

Question 7

Money substitutes

Answer 7

Anything which can be used a medium of exchange but which are not stores of value. Examples are charge cards or credit cards.

Question 8

Primary sector

Answer 8

Extractive and agricultural industries.

Question 9

Private sector

Answer 9

The part of the economy owed by individuals, companies and charities.

Question 10

Productivity

Answer 10

Output per unit of input employed

Question 11

Public sector

Answer 11

The part of the economy where production is organised by the state or government.

Question 12

Secondary or manufacturing sector

Answer 12

Industries involved in the production of goods, mainly manufactured goods.

Question 13

Specialisation

Answer 13

A system of organization where economic units such as households or nations are not self-sufficient but concentrate on producing certain goods and services and trading surplus with others.

Question 14

Sub-market

Answer 14

A market which is a distinct and identifiable part of a larger market

Question 15

Tertiary or service sector

Answer 15

Industries involved In production of services.