evaluations points edexcel a level economics

what are strengths of division of labour and productivity

higher productivity - if workers stay motivated

lower unit costs - but risk of overdependence on single region/task

what are weakness’s of division of labour and productivity

workers become replaceable - lead to low wage and job insecurity

if demand for specialised product falls the whole economy suffers

what are the strengths of the money function

facilitates trade - only if money is stable and trusted

what are the weaknesses of the function of money

inflation erodes value - reduces effectiveness as a store of value

digital divide - reliance on digital money excludes some groups

what are the weakness’s of demand

demand curves assume ceteris paribus - unrealistic in dynamic markets

PED is difficult to measure - firms may misjudge pricing

what are the weakness’s of supply

may be inflexible in the short run - especially in agriculture sectors

assumes profit maximisation - firms may prioritise ethics or market share

external shocks disrupt supply - weather, war etc

what are the strengths of PED, YED and XED