diminishing marginal utility

• What does specialisation refer to in economics?

  Focusing on making a particular good/service
• What is the division of labour?

  Breaking production into various small tasks
• How does specialisation increase productivity?

  Through repetition and automation in production
• What are the benefits of countries specialising in certain goods/services?

  Higher incomes and standards of living
• What are the advantages of specialisation and division of labour?

  • Increased output due to worker skill development
  • Less wastage from improved efficiency
  • Lower unit costs from economies of scale
• What are the disadvantages of specialisation and division of labour?

  • Boredom leading to decreased productivity
  • Higher wages needed for monotonous work
• How does specialisation affect output in countries?

  It increases output by focusing on certain goods
• What is one benefit of greater variety due to specialisation?

  More choices for consumers within goods
• How does specialisation contribute to economic growth?

  By increasing trade and export revenue
• What are the disadvantages of specialising in production for trade?

  • Structural unemployment from narrow skill sets
  • Over reliance on trading partners
  • Difficulty adapting to changing tastes
  • Depletion of finite resources
• What is structural unemployment in the context of specialisation?

  Unemployment due to narrow skill sets
• How can over reliance on trading partners be problematic?

  It risks supply shortages from disruptions
• Why is changing tastes a disadvantage of specialisation?

  Firms may struggle to adapt to changes
• What issue can arise from finite resources in specialisation?

  Depletion of resources can occur over time
• How does producing a variety of goods help with resource consumption?

  It slows down the depletion of resources