Specialisation and the division of labour

Created by

Lucas B

Cards (12)

What is the division of labour?
Labour division where workers specialise on small, very specific tasks in the production of a product
What are the two main advantages of specialisation and the division of labour?
An increased worker efficiency due to being specialised in one specific skill, and lower production costs due to a higher distribution of goods and services
What are the two main disadvantages of specialisation and the division of labour?
Boredom for workers due to repeated tasks which could lead to a decrease in production, and and an over dependence on all workers
What is the advantage of specialising in the production of goods and services to trade?
Countries which specialise in certain products can trade for products they don't produce, leading to an increased output and lower prices
What is the disadvantage of specialising in the production of goods and services to trade?
Countries can become over dependent on imported goods and services which could leave them vulnerable in case of a worldwide emergeancy
How does the size of the market limit the division of labour?
If there is only a small market than it is more difficult to specialise
How does the type of product limit the division of labour?
Some products are likely to be unique and not suitable for the division of labour
How do transport costs limit the division of labour?
If they are high then large scale production and the division of labour might not be possible
How is money used as a medium of exchange?
It enables people to specialise, exchanging the money earned from doing a job for the goods and services they wish to buy
How is money used as a store of value?
It enables people to save in order to buy goods in the future
How is money used as a measure of value?
It enables people to assess the value of different goods and services by comparing prices
How is money used as a means of deffered payments?
It enables people to buy goods and pay for them on credit