PPF's and Growth

HideShow resource information
Economic Growth cause when
The quantity of resources available for production increases e.g. increase in the number of workers in an economy Increase in the quality of resources e.g. education, technical progress
1 of 13
Negative Growth can occur when
productive potential falls This can happen if war may destroy economic infrastructure Rapid fall in number of workers in a population reduces global output Global warming could affect agriculture // knock on effect on production (could affect the w
2 of 13
Specialisation
= production of a limited range of goods by an individual/ firm/ country in co=operation with others so a complete range of goods are produced Can occur between nations – where one nation primarily produces one good Globalisation intensifying this
3 of 13
Where can it occur
Can occur between economies – regional economies specialise e.g. Cornwall specialises in tourism Can occur between individuals – called the division of labour
4 of 13
Adam Smith
created the division of labour as he wrote in his book An Enquiry into the Nature and Causes of the Wealth of Nations - the production of a pin
5 of 13
What did he say about the divison of labour
Division of labour = increase in productive (capital and labour productivity) Specialisation allows worker to gain skills through a narrow range of tasks The division of labour is cost effective – provides workers with specialist tools Time = saved
6 of 13
Downside of specialisaion
• Jobs divided too much = work become tedious and monotonous • Workers may feel alienated from work • May impact quality and less output per person • Increased abseentism
7 of 13
Over specialisation
High unemployment as work is no longer needed e.g. heavy industry – which is then not replaced by service sector jobs Also a break down in part of the chain can cause chaos
8 of 13
Primary
raw materials are extracted / food is grown e.g. fishing, oil extraction
9 of 13
Secondary
raw materials transformed to good through manufacturing e.g. motor manufacturing
10 of 13
Tertiary
produces services e.g. transport, education Most firms tend to operate in one of these sectors
11 of 13
Public
state/government sector of the economy. Production of goods and services achieved by organisations such as gov departments
12 of 13
Private
part of the economy that is owned by private individual, companies and charities
13 of 13

Other cards in this set

Card 2

Front

Negative Growth can occur when

Back

productive potential falls This can happen if war may destroy economic infrastructure Rapid fall in number of workers in a population reduces global output Global warming could affect agriculture // knock on effect on production (could affect the w

Card 3

Front

Specialisation

Back

Preview of the front of card 3

Card 4

Front

Where can it occur

Back

Preview of the front of card 4

Card 5

Front

Adam Smith

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Growth and Economies resources »