1b specialisation and the division of labour

define division of labour

a process whereby the production procedure is broken down into a sequence of stages and workers are assigned to a particular stage

name 3 advantages of the division of labour

1. training can be more cost effective

2. individual workers can become more skilled at specialised tasks

3. higher output

name 2 disadvantages of the division of labour

1. tasks may become tedious - demotivate the worekrs

2. workers can be inflexible - production may not continue if one worker is ill

define specialisation

when we concentrate on one product or task

what are 4 advantages of specialisation and division of labour in organisation

lower cost for firms

lower prices for consumers

higher profit for firms

higher wages for workers

increased productivity

expansion to international trade

what are 4 disadvantages of the division of labour and specialisation in organisation

repetitive tasks may lead to boredom

lack of motivation so lower productivity

increase work turnover rates

workers may find difficulty finding work because they’re only trained in one skill

what are 4 pros of division of labour and specilisation in trade

high productivity

competitive goods

increased exports so economic growth

higher income and better standards of living

what are 4 cons of division of labour and specialisation in trade

firms may not be able to keep up with international competition so they can go out of business

structural unemployment

specialisation may lead to over-dependancy

can increase the rate of depletion

who introduced the division of labour

adam smithh

what are the 4 functions of money

1. money is a medium of exchange

2. money is a measure of value

3. money is a store of value

4. money is a method of deferred payments

what are 6 characteristics of money

1. durable

2. portable

3. divisible

4. stable

5. scarce

6. accepted

what are the 3 types of money

1. commodity money - eg gold, diamond

2. representtive money - represents something of value

3. fiat money - has value because the government says so