Micro 4.2

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What does specialisation involve?
An individual worker, firm, region or country producing a limited range of goods or services.
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What is division of labour?
Specialisation at the level of an individual worker.
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How can a country specialise to a large extent?
If it is able to exchange the output for other goods and services that it is less able to produce efficiently, such as food.
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What is the advantage of money?
Money as a medium of exchange avoids the need for barter.
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What are 4 benefits of specialisation and division of labour?
Repetition leading to expertise, reduced time switching leading to increased productivity, specialist machinery, natural strengths.
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What is the short run defined as?
The period of time in which at least one factor of production is fixed in terms of the number of units a firm can use.
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Which factors of production are likely to be fixed in the short run?
Land or capital equipment.
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What is the long run defined as?
The period of time over which a firm can vary all the factors of production it uses and may increase or reduce its scale of output.
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Other cards in this set

Card 2

Front

What is division of labour?

Back

Specialisation at the level of an individual worker.

Card 3

Front

How can a country specialise to a large extent?

Back

Preview of the front of card 3

Card 4

Front

What is the advantage of money?

Back

Preview of the front of card 4

Card 5

Front

What are 4 benefits of specialisation and division of labour?

Back

Preview of the front of card 5
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