division of labour

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  • Specialisation, division of labour and exchange
    • Specialisation- is when an economy or business concentrates on a particular product or task
      • Gains from Specialisation- higher output as total production of goods and services and quality can be raised. Variety so consumers can have access to a greater variety of products
    • Division of labour- is a particular type of specialisation where the production of a good is broken up into many separate tasks each performed by one person or a small group of people.
      • Benefits of division of labour
        • More output
        • It more efficient
        • less chance of mistakes
        • cheaper production costs
        • Saving time
      • Limitations of division of labour
        • Less variety as they are mass produced
        • demotivated staff so quality decreases
        • long line of communication
        • high turnover of staff
        • higher absenteeism
    • Trade and Exchange
      • This is because workers who specialise cant enjoy a reasonable standard of living if they can only consume what they produce
        • so the solution is to produce a surplus of products and trade with others for products produced by them
      • so the solution is to produce a surplus of products and trade with others for products produced by them
      • These days we use money as a medium of exchange

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