Theme 1 - Topic Questions (Specialisation and The Division of Labour)

Question 1

Specialisation

Answer 1

Where economies or businesses concentrate on producing goods that they’re most efficient at, then trade the surplus.

Question 2

3 Benefits of specialisation

Answer 2

• Increased productivity
• Reduced cost of training
• Can reduce cost of capital as not all members of staff need all items of capital

Question 3

What is meant by productivity and how can you measure it?

Answer 3

Productivity measures the output per unit of input e.g. labour productivity measures the output per work.

Question 4

Why is system of exchange an essential part of specialisation?

Answer 4

Using a currency means you do not need to find someone who wants what you have got, and who has got what you want. Currency means you can sell o one individual and use that money to spend on something from someone else.

Question 5

What might increase labour productivity in a market?

Answer 5

Better education, training, motivation and access to capital.

Question 6

Division of labour

Answer 6

When a task is broken into sub-tasks and labour allocated to each subtask.

Question 7

How does division of labour increase productivity?

Answer 7

Each worker becomes more efficient at their part of production which means that they can produce more goods.

Question 8

3 Disadvantages of specialisation

Answer 8

• Can introduce bottlenecks in production line
• Staff may leave as the job gets repetitive (Labour turn-over)
• Can reduce quality of products as they are mass produced

Question 9

4 Functions of money

Answer 9

• As a store of value
• Measure of value
• Method of deferred payment
• As a medium of exchange