Specialisation and Division of Labour

Question 1

Specialisation

Answer 1

Concentrating/focusing on a particular skill eg particular step in a manufacturing process

Question 2

Division of Labour

Answer 2

The separation of work process into a number of simple and separate tasks, with each task being performed by a separate person or a group of people

Question 3

3 Sectors of the Economy

Answer 3

Primary Sector - Where raw materials are extracted and food is grown, eg agriculture, fishing.

Secondary/manufacturing sector - Raw materials are transformed into goods eg food processing, furniture making.

Tertiary/Service Sector - Produces services eg transport, sport and lesiure, distribution, financial services, education and health.

Question 4

Economies can be split into 2 sectors, what are they?

Answer 4

Public Sector - State/Government Sector of Economy

Private Sector - Private individuals/companies/charities.

Question 5

Sub-Market

Answer 5

A market within a larger market, eg market for diesel fuel in oil market.

Question 6

Barter Economy

Answer 6

Exchange done by swapping goods, not using money.

Question 7

The Functions of Money

Answer 7

A medium of exchange

A measure of value - eg a skirt is worth £15, a dress is worth £20, so a dress is worth 2 skirts.

A store of value - If money loses value in the future, people are more likely to spend now.

A method of deferred payment - People are only likely to lend money now if they will be able to buy back roughly the same amount of goods when its paid back.