3.1.3.2 and 4.1.4.2 Specialisation, division of labour and exchange

Specialisation occurs when a ... concentrates on producing a particular good or service

• Country
• Firm
• Individual
• Region

To specialise you must have high productivity

• True
• False

Specialisation means that countries do not have to be self-sufficient.

• True
• False

Britain is highly productive with financial services, and produces a surplus of them, which

• it sells abroad.
• it consumes itself

The proceeds of the UK selling financial services is spent on...

• fruit from abroad
• other financial services from abroad

Self-sufficiency would make it difficult to satisfy ...

• both 1 and 2
• material wants
• consumer and capital goods
• our basic needs

production of a good is broken up into many separate tasks each performed by a different person

• Division of labour
• Specialisation

workers concentrate on different tasks within a firm; not mastering all aspects of production

• Division of labour
• Specialisation

division of labour reduces productivity

• False
• True

Adv. of specialisation and division of labour in the production of goods. Which is untrue?

• The division of labour requires less training time
• firms produce on a larger scale. i.e. economies of scale
• big production task is manageable by spreading the work out
• The division of labour can make jobs highly repetitive