POB notes

Subsistence Production

An economic system where communities produce just enough goods to meet their own basic needs through activities such as agriculture, hunting, and gathering.

Barter

The direct exchange of goods and services between individuals or parties without using money as a medium of exchange.

Double Coincidence of Wants

A situation in bartering where both parties must want what the other possesses, limiting trade opportunities.

Indivisibility of Goods

The characteristic of certain items that cannot be divided for trade without destroying their value.

Specialization

Focusing on a specific task or subject area to develop high expertise.

Division of Labour

Breaking down a complete production process into smaller tasks, allowing workers to specialize in one task and maximize productivity.

Advantages of Specialization

Benefits such as increased productivity, reduced training time, and enhanced efficiency gained from focusing on specific tasks.

Size of Market (Disadvantage of Specialization)

Small market sizes restrict the extent of division of labour application.

Motivation (Disadvantage of Specialization)

Repetitive work can lead to boredom and reduced job satisfaction.

Loss of Craftsmanship (Disadvantage of Specialization)

Automation and standardization eliminate individual craftsmanship and personal touch.