LS5 - Specialisation And Division Of Labour Flashcards
When does specialisation occur?
When a individual, firm, region or country focus on the production of a narrow range of goods and services.
What is the division of labour?
The specialisation of workers on a narrow range of tasks in the production process.
What is productivity?
The effectiveness of productive effort. Usually measured as rate of output per unit of input.
What does increased productivity lead to?
Higher output and higher quality, higher standard of living, more efficient use of resources
What is the advantages of division of labour?
Workers become more skilled through repetition of tasks, the productivity of workers rise so output increases, time is saved by workers focusing on narrow ranges of tasks and workers are easier and cheaper to train.
What are the disadvantages of division of labour?
Repetition of tasks lead to boredom causing quality and morale to drop for workers. Simplified job roles can reduce the pride workers feel in their jobs.
What are the advantages of specialisation?
Better quality and quantity of products, more efficient use of scarce resources and higher trade with other countries, higher economic growth = higher living standards
Specialisation disadvantages?
It leads to over reliance on a few industries because they are highly developed which is risky, increased interdependence reduces self-sufficiency.
What are the two methods of trading?
Barter and money
What’s the two functions of money?
Median of exchange (something commonly accepted for goods) and measure of value (the price of a good reveals its value)
What are two other functions of value?
Store of value (value is maintained and can be kept for a long time) and method of deferred payment (allows debt to be created)
