LS5 - Specialisation, Functions Of Money

Question 1

Specialisation

Answer 1

When an individual, firm, region or country concentrates on the production of a limited range of goods and services

Question 2

Division of Labour

Answer 2

Specialisation of workers on specific tasks in production process

Question 3

Productivity

Answer 3

Output produced/total inputs used
Rate of productive effort

Question 4

Advantages of division of labour

Answer 4

Workers become more skilled through repetition
Productivity of workers rises so output increases
Time saved
Cheaper to train

Question 5

Disadvantages of division of labour

Answer 5

Repetition of tasks leads to monotony - quality and morale drop
Reduced pride workers feel in their job
Reduced self-sufficiency
Overreliance

Question 6

Methods of trading

Answer 6

Bartering and moneu

Question 7

Medium of exchange

Answer 7

Something commonly accepted in exchange for goods and services

Question 8

Measure of value

Answer 8

Price of good reveals its value

Question 9

Store of value

Answer 9

Value is maintained and can be kept for long time

Question 10

Method of deferred payment

Answer 10

Allows debt to be created