LO:
a) Specialisation and the division of labour: reference to Adam Smith
b) The advantages and disadvantages of specialisation and the division of labour in organising production
c) The advantages and disadvantages of specialising in the production of goods and services to trade
d) The functions of money (as a medium of exchange, a measure of value, a store of value, a method of deferred payment)
a) Specialisation and the division of labour: reference to Adam Smith
b) The advantages and disadvantages of specialisation and the division of labour in organising production
c) The advantages and disadvantages of specialising in the production of goods and services to trade
d) The functions of money (as a medium of exchange, a measure of value, a store of value, a method of deferred payment)
a) specialisation and the division of labour
Adam Smith argued that economies function most efficiently and fairly when individuals are allowed to pursue their own interests; the great threat to economic growth is government intervention, known as the "invisible hand". ![]()
|
|
|
|
Source: http://www.theguardian.com/news/datablog/2010/feb/24/uk-trade-exports-imports
b) The advantages and disadvantages of specialisation and the division of labour in organising production
c) The advantages and disadvantages of specialising in the production of goods and services to trade
Activity: from the videos, identify the benefits and drawbacks of specialisation and the division of labour on both employees and the firm
c) The advantages and disadvantages of specialising in the production of goods and services to trade
Activity: from the videos, identify the benefits and drawbacks of specialisation and the division of labour on both employees and the firm
|
![]()
A summary
Specialisation can also take place among nations, simply because some countries are better equipped to produce some products than others. For example, it would not make sense for the UK to go into commercial production of pineapples or mangoes. There are other countries with climatic conditions that are much more suitable for producing these products. |
d) The functions of money
Task: imagine a world without money... would this be possible?
Money is a medium of exchange; it is acceptable to both buyers and sellers. However, nobody would accept money in payment for goods or services if they did not trust that they could proceed to use the money for further transactions. Money therefore acts as a store of value; it must be possible for future transactions. It also allows for the value of goods and services to be compared - it provides a unit of account; prices of goods and services reflect the value that society places on them and must be expressed in money terms. |
|