Specialisation and trade (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What is specialisation in economics?
What is specialisation in economics?
Focus on production of one task/product
What does division of labour involve?
What does division of labour involve?
Splitting production into tasks per worker
What is a barter system?
What is a barter system?
Trading goods/services for other goods
What is a double coincidence of wants?
What is a double coincidence of wants?
Both parties want what the other has
How does specialisation improve efficiency?
How does specialisation improve efficiency?
Through repeated practice & expertise
What benefit comes from workers focusing on specific tasks?
What benefit comes from workers focusing on specific tasks?
Greater skill and speed in those tasks
How does division of labour save time?
How does division of labour save time?
Reduces time lost switching tasks
What can firms achieve through division of labour at scale?
What can firms achieve through division of labour at scale?
Cost savings via economies of scale
What major challenge limits efficiency in barter systems?
What major challenge limits efficiency in barter systems?
Double coincidence of wants required
What issue does barter face regarding valuation?
What issue does barter face regarding valuation?
Lack of common measure of value
How does money improve upon barter systems?
How does money improve upon barter systems?
Eliminates double coincidence need
What does the price mechanism convey in a monetary economy?
What does the price mechanism convey in a monetary economy?
Info about relative value of goods