Specialisation Flashcards
(9 cards)
What is specialisation?
Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency
What are the advantages of specialisation?
Focus on what you are best at
Economies of scale
More efficient
What are the disadvantages of specialisation?
Repetitive tasks
Less self-sufficient
Lack of flexibilty
What is trade?
Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money.
What is the barter system?
Exchanging resources
Why is the barter system inefficent?
You might not have or want what someone else has
What is money?
A medium of exchange
What are the functions of money?
Measure of value
Store of value
Standard of payment
Why is trade important post-specialization?
Allows people to specailize
