Specialisation + Exchange

Question 1

What is an exchange

Answer 1

where goods and services are traded

Question 2

what is specialisation

Answer 2

concentration by a worker or workers on a narrow range of goods and services- greater productivity and higher output

Question 3

what is the division of labour

Answer 3

dividing the production process into different stages, so workers focus on specific tasks- increases efficiency

Question 4

productivity

Answer 4

output per person per unit of time

Question 5

benefits of specialisation

Answer 5

increase in output
wider range 
increased efficiency 
increased productivity 
improved quality

Question 6

negatives of specialisation

Answer 6

tedious
repetitive
low morale
lose motivation

Question 7

consequences of specialisation

Answer 7

paves the way for globalisation

Question 8

what is a production possibility curve

Answer 8

illustration of the trade offs facing an economy that produces only 2 goods

Question 9

what is a trade-off

Answer 9

losing one quality in return for gaining another

Question 10

what is ceteris paribus

Answer 10

all factors are kept constant

Question 11

assumptions underlying PPC

Answer 11

resources are fixed
fixed labour
fixed productivity
fixed level of productivity