LS5- Specialisation

Question 1

Specialisation

Answer 1

Production of a limited range of goods and services by an individual, firm or country

Question 2

Division of labour

Answer 2

Specialisation of workers on specific task in the production process

Question 3

Advantages of Division of Labour

Answer 3

• repetition enable workers to gain skills in a narrow range of task so they become more productive at carrying out the task
• cost effective for firms as there are less workers so less resources are needed
• less time consuming as workers are not changing between tasks, moving from place to place and using different machinery/tools
• workers can become specialised in jobs which they are best suited to

Question 4

Disadvantages of Division of Labour

Answer 4

• repetition of the same task can become monotonous- boredom increases causing a poorer quality of output- workers will avoid doing work
• over specialisation- narrow skill set means if you lose your job you have an increased risk of unemployment- furthermore, the job may be replaced by machinery

Question 5

Productivity

Answer 5

Measure of productivity effort- rate of output per unit of input

Question 6

What does increased productivity lead to?

Answer 6

• higher quality and quantity of output
• higher living standards
• more efficient use of resources

Question 7

Functions of money

Answer 7

• Medium of exchange- commonly accepted in exchange for goods and services
• Measure of value- price of a good/service shows its value
• Method of deferred payment- allows debt to be created- returned over a long period of time
• Store of value- value is maintained and can be kept for a long period of time