specialisation and the division of labour

• Specialisation and division of labour give rise to large gains in productivity
• The economy can be divided into 3 sectors: primary, secondary and tertiary. It can also be divided between the state sector and the private sector
• Markets exist for buyers and sellers to exchange goods and services using barter or money
• Capital productivity - output per unit of capital employed
• • Division of labour - specialisation by workers, who perform different tasks at different stages of production to make a good or service, in cooperation with other workers 
• • Labour productivity - output per worker
• • Market - any convenient set of arrangements by which buyers and sellers communicate to exchange goods and services
• Primary sector - extractive and agricultural industries
• • Private sector - the part of the economy owned by individuals, companies and charities
• Productivity - output per unit of input employed
• • Public sector - the part of the economy where production is organised by the state or the government 
• Secondary or manufacturing sector - industries involved in the production of goods, mainly manufactured goods
• • Specialisation - a system of organisation where economic units are not self-sufficient but concentrate on producing certain goods and services and trading the surplus with others
• Sub market - a market which is a distinct and identifiable part of a larger market
• • Tertiary or service sector - industries involved in the production of services