Specialisation:
◦Production of a limited range of goods by an individual, rm or country in co-operation with
others so that together a complete range of goods is produced
Division of Labour:
◦Dividing the workforce into sections in which each worker specialises in a particular task
◦Specialisation of individuals
These steps should help to increase productivity which in turn helps to get rid of the basic economic
problem of scarcity
Advantages:
◦Employee:
‣ Become an expert
◦Employer:
‣ Increase in labour productivity
‣ Increase in ine ciency of resources
‣ Increase in quality of output
Disadvantages:
◦Employee:
‣ Repetition creates monotony
‣ Makes it easier to replace workers with machines
‣ Can lead to blame culture
◦Employer:
‣ Creates interdependence in production
‣ Quality could su er due to an unmotivated workforce
Specialisation:
◦By world specialisation and trade global production possibility increases
◦Countries should specialise in the goods for which they have the lowest opportunity cost to
produce
Characteristics of Money:
◦Durability
◦Portable
◦Divisible
◦Hard to counterfeit
◦Generally accepted by population
◦Valuable
◦Production of a limited range of goods by an individual, rm or country in co-operation with
others so that together a complete range of goods is produced
Division of Labour:
◦Dividing the workforce into sections in which each worker specialises in a particular task
◦Specialisation of individuals
These steps should help to increase productivity which in turn helps to get rid of the basic economic
problem of scarcity
Advantages:
◦Employee:
‣ Become an expert
◦Employer:
‣ Increase in labour productivity
‣ Increase in ine ciency of resources
‣ Increase in quality of output
Disadvantages:
◦Employee:
‣ Repetition creates monotony
‣ Makes it easier to replace workers with machines
‣ Can lead to blame culture
◦Employer:
‣ Creates interdependence in production
‣ Quality could su er due to an unmotivated workforce
Specialisation:
◦By world specialisation and trade global production possibility increases
◦Countries should specialise in the goods for which they have the lowest opportunity cost to
produce
Characteristics of Money:
◦Durability
◦Portable
◦Divisible
◦Hard to counterfeit
◦Generally accepted by population
◦Valuable
