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1.1.5 Specialisation & Division of Labour - Coggle Diagram
1.1.5 Specialisation & Division of Labour
specialisation
narrowing the production of goods to a few select items
division of labour
dividing the production process into different stages enables workers to focus on specific tasks
specialisation & division of labour to businesses and consumers
advantages
higher productivity through better use of workers
workers highly productive
greater allocative efficiency
disadvantages
national independence
risk of long-term unemployment
lack of skills
functions of money
measure of value
helps to compare prices & decides what things are worth it
method of deferred payment
means of exchange
tool we use to buy things
why money is a means of exchange
makes trading easier
instead of bartering, we can use money to buy what we need
allows a country to export goods to one country and import from a different country