Theme 1.1.5 Specialisation and division of labour (unit 5) Flashcards
Define specialisation.
Specialisation is the production of a limited range of good produced by firms or individuals in co-operation with others to produce a a complete range of goods. This is done to maximise efficiency.
Globalisation.
Globalisation is used to increase the number of people in co operation to increase the amount of specialisation possible.
What is the division of labour?
The specialisation of individuals is called the division of labour and was coined by Adam Smith.It is where different workers perform different parts of a process which they are specialised in. This results in large gains in terms of productivity.
Negatives of the division of labour.
- It can result in skills shortages.
- Work can be monotonous and result in an unhappy workforce.
Define productivity.
Output per unit of input employed
Define labour productivity.
Output per worker
Define capital productivity
Output per unit of capital employed
Benefits of specialisation.
- Workers become very efficient in a narrow area.
- It becomes more cost effective to provide specialised tools.
- Time is saved as time is wasted while changing jobs.
What is the ‘primary sector’?
It is the part of the economy where raw materials are extracted and food is grown.
What is the ‘secondary sector’?
It is the part of the economy that converts raw materials into goods.
What is the ‘tertiary/service sector’?
It is the part of the economy that provides services such as transport, leisure and financial services.
What is the public sector?
It is the state or government sector of an economy. This is where the government organises the production of goods.
What is the private sector?
Is is the part of the economy owned by individuals and companies.
What is a market?
Any convenient set of arrangements by which buyers and sellers communicate to exchange goods and services.
What is a sub-market?
A sub-market is a distinct and and identifiable part of a larger economy.
