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 tasks in the production process

Question 3

Advantages of Division of Labour

Answer 3

• Repetition enables workers to gain skills in a narrow range of tasks - they become more productive at carrying out the task
• Cost effective for firms - smaller number of workers - less resources needed
• Less time consuming - workers are not changing between tasks, moving from place to place and using different machinery/tools
• Workers can become specialised in jobs whihc they are best suited

Question 4

Disadvantages of Division of Labour

Answer 4

• Repetition of same task can become monotonous - boredom increases and poorer quality of output - workers will try to avoid doing work
• Over-specialisation - lack of variety of jobs means if you lose your job, there arent a lot of alternatives - narrow skillset reduces chances of further employment

Question 5

Productivity

Answer 5

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

Question 6

Increased productivity…

Answer 6

• Higher quantity and quality of output
• Higher living standards
• More efficient use of resources

Question 7

Functions of Money

Answer 7

• Medium of exchange - something commonly accepted in exchange for goods and services
• Measure of value - the 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