Th1.1: Specialisation Flashcards
1
Q
What is specialisation?
A
the production of a limited range of goods by a company/country/individual so they aren’t self-sufficient and have to trade with others
2
Q
What does division of labour mean?
A
when labour becomes specialised during the production process so each person does a specific task in cooperation with other workers
3
Q
Who stated the concept of specialisation and the division of labour?
A
Adam Smith
4
Q
What does increasing the division of labour and specialisation do?
A
increase labour productivity, allowing firms to increase their efficiency and lower their costs of production
