4.1.4.2 Specialisation, division of labour and exchange notes

What is a primary benefit of specialization in the workforce?

• Increased job satisfaction

• Higher production costs

• Improved efficiency and productivity

• Decreased market competition

How does division of labor contribute to an economy?

• It limits the range of skills workers can develop

• It increases the time needed to produce goods

• It enhances the quality of products through focused expertise

• It reduces the need for cooperation among workers

Why does specialization necessitate an efficient means of exchanging goods and services?

• Specialized producers need to trade to meet all their needs

• It reduces the overall demand for goods

• It simplifies production processes

• It increases self-sufficiency among workers

What role does money play in an economy where specialization is prevalent?

• It complicates the transaction process

• It acts as a medium of exchange, facilitating trade

• It decreases the value of specialized goods

• It increases production time

Which of the following is NOT a benefit of the division of labor?

• Increased production efficiency

• Enhanced skill development in specific tasks

• Greater job security in various sectors

• Reduced time in training employees

How does specialization affect consumer choices?

• Reduces variety of products

• Increases prices of goods

• Provides a wider range of products

• Limits market size

What is a potential downside of a highly specialized economy?

• Increased dependence on other sectors or economies

• More efficient use of resources

• Lower costs of goods and services

• Faster innovation rates

In the context of specialization, what is the primary function of money?

• To serve as a store of value

• To act as a unit of account

• To facilitate the exchange of goods and services

• To control inflation

Which statement best describes the relationship between specialization and market economies?

• Specialization reduces the efficiency of market economies

• Specialization and market economies are unrelated

• Specialization drives the growth of market economies through trade

• Market economies limit the extent of specialization

What is an example of division of labor in a manufacturing setting?

• All workers performing the same task from start to finish

• Each worker performing a specific, separate task in the production process

• Workers frequently switching tasks to increase versatility

• Outsourcing all production to another company