SPECIALISATION (Known also as division of labour)

BUSINESSESSADVANTAGES DISADVANTAGES

EMPLOYEESADVANTAGES DISADVANTAGES

Theme 1: Introduction to markets

and market failure

In this theme, students will consider how markets work, looking at how supply and demand interact to allocate resources in local, national and international markets. They will learn how to apply supply and demand analysis to real-world situations and be able to offer explanations of consumer behaviour. This will involve looking at both how consumers act in a rational way to maximise utility and howfirms maximise profit, but also why consumers may not behave rationally.

1.1 Nature of economics

Subject content

1.1.5 Specialisation and the division of labour

What students need to learn:

a) Specialisation and the division of labour: reference toAdam Smithb) The advantages and disadvantages of specialisation andthe division of labour in organising productionc) The advantages and disadvantages of specialising in theproduction of goods and services to traded) The functions of money (as a medium of exchange, ameasure of value, a store of value, a method of deferredpayment)

There are three employment sectors…

Which sector does the job you chose fall

into?

PRIMARY SECONDARY TERTIARY

What does this graph tell us?

In which sector are people employed?

ACTIVITY: Can you match the country/year to the pie chart?

The Primary SectorWhy has employment decreased?

The Secondary SectorWhy has employment decreased?

The Tertiary SectorWhy has employment increased?

What is a market?

Market – Any convenient set of arrangements by which buyers and sellers communicate to exchange goods and services.

Key Term:

Who are the economic actors?What can you tell me about CONSUMERS?

Who are the economic actors?What can you tell me about WORKERS?

Who are the economic actors?What can you tell me about FIRMS?

Who are the economic actors?What can you tell me about GOVERNMENT?

Money & Exchange

A medium of exchange

A measure of value

A store of value

A method of deferred payment

http://study.com/academy/lesson/the-four-basic-functions-of-money.html

https://www.boundless.com/business/textbooks/boundless-business-textbook/the-functions-of-money-and-banking-21/money-as-a-tool-123/functions-of-money-568-3194/

Forms of money in a modern economy

Forms of money in a modern economy