section 1

Question 1

What are the functions of money?

Answer 1

• Medium of exchange
• unit of account
• standard of deferred payment
• store of value

Question 2

What are the disadvantages of the division of labour?

Answer 2

• demotivated worker will lead to less production
• high worker turnover
• risk of long term
  unemployment (replaced by tech)
• highly standardised goods and services

Question 3

What are the advantages of the division of labour?

Answer 3

• workers are highly productive
• specialist capital making workers more efficient
• lower prices, higher quality, choice and quantity for consumers

Question 4

what are the disadvantages of specialisation?

Answer 4

• finite resources
• changes in fashion tastes
• De - industrialisation (if a country becomes more efficient than the current one will de - industrialise)

Question 5

What are the advantages of specialisation?

Answer 5

• higher output, leads to increase trade and growth
• wider range of goods/services within an industry
• higher productivity through better use of workers
• greater allocative efficiency
• quality improvements

Question 6

What is the difference between specialisation and the division of labour?

Answer 6

• specialisation - the concentration of production on a narrow range of goods and services
• division of labour - Breaking down the production process into separate tasks upon specialisation