Specialisation

Question 1

Specialisation leads to

Answer 1

Division of labour.

Question 2

Advantages of specialisation

Answer 2

People specialise in things they’re best at.

Can lead to better quality or higher quantity. - increased labour productivity.

One way in which companies can achieve economies of scale.

Lead to more efficient production. Helps tackle problem of scarcity.

Training costs reduced if workers only perform limited tasks.

Question 3

Disadvantages of specialisation

Answer 3

Repetitive tasks = boredom

Countries less self sufficient can be a problem if trade is disrupted.

Lack of flexibility the workforce left behind can struggle to adapt.

Question 4

What does trade mean

Answer 4

Trade means people can buy the stuff they’re no longer making themselves.

Question 5

What is money

Answer 5

It’s a medium of exchange.

Question 6

What are 3 other functions of money?

Answer 6

A measure of value (the value given to a good)

A store of value

A standard (or method) of deferred payment - money can be paid at a later date for something that’s consumed now.