specialisation and division of labour

Question 1

what is specialisation

Answer 1

when an individual, firm or country oncentrates on the production of a narrow range of goods/services

Question 2

what is division of labour

Answer 2

when a production process is broken down into separate tasks

Question 3

how does specialisation and division of labour impact the PPc

Answer 3

capital becomes more efficient, workers get faster at their stage increasing productive efficiency maximising the factors of p. move closer to ppc or shift ppc out

Question 4

what is a negative of specialisation

Answer 4

creates a need for trade as firm/ individuals cant suply theselves with evrything they want or need. this could be barter (swapping) or selling

Question 5

functions of money

Answer 5

doesnt rely on double coincidence of wants, is a store of value, method of deferred payment and a unit of account