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 employed.

Question 3

Division of Labour

Answer 3

Specialisation by workers, who perform different tasks at different stages or production to make a good or service, in cooperation 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 which is:

• a medium of exchange
• a measure of value
• a store of value
• a method of deferred payment

Coin or bank balance

Question 7

Money Substitute

Answer 7

Anything which can be used as a medium of exchange but which are not stores of value. E.g. credit cards

Question 8

Primary Sector

Answer 8

Extractive and agricultural industries.

Question 9

Private Sector

Answer 9

Part of the economy owned by individuals, companies and charities.

Question 10

Productivity

Answer 10

Output per unit of input employed.

Question 11

Public Sector

Answer 11

Part of the economy where production is organised by the state of 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 organisation where economic units such as households or nation are not self-sufficient but concentrate on producing certain goods and services and trading the 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 the production of services.