specialisation and trade

Question 1

what is specialisation ?

Answer 1

specialisation occurs when economic units such as individuals , regions or countries concentrate on producing specific goods or services .

Question 2

what is division of labour ?

Answer 2

division of labour is when the production procedure is broken down into stages with speciallised workers

Question 3

what are the advantages of specialisation ?

Answer 3

• more effective and efficient
• greater understanding of the requirement of production
• greater quality and output

Question 4

what is a barter system ?

Answer 4

a negotiation of a good/service but without money

Question 5

what are the advantages/ disadvantages to the division of labour ?

Answer 5

advantages :

• higher productivity
• better use of scarce resources
• more profit
• more efficient

disadvantages:

• can be boring for workers
• difficult to see which workers are doing well
• lack of innovation
• workers may not have transferable skills

Question 6

how does specialisation reduce the problem of scarcity ?

Answer 6

specialisation reduces the problem of scarcity as country or region become more efficient in producing a good or a service, therefore they have a higher output. as they are more efficient this reduces the problem of scarcity as they efficiently use there resources

Question 7

why is money more efficient than bartering ?

Answer 7

money is more efficient than bartering as it :

• stores value
• acts as a medium of exchange
• a standard payment globally