Specialisation

Question 1

Define specialisation

Answer 1

When a business of any size concentrates resources on a product or task. When individual parts of the company or factory but I’m very good/focus on one aspect.

Question 2

What is division of labour?

Answer 2

Where production is broken down into many separate tasks. This can raise output per person due to learning by doing. Therefore increasing productivity and lowering supply cost per unit

Question 3

What are the advantages of specialisation?

Answer 3

– High output
– variety of high-quality products
– a bigger market offering opportunities for economies of scale
– competition and low prices

Question 4

What are the functions of money?

Answer 4

– Medium of exchange
– store of value (in physical attributes, in a bank account)
– measure value (value of a product)
– standard of deferred payment (loans, borrowed)

Question 5

Define inflation

Answer 5

Money is worth less because prices are rising