Specialisation and the division of labour

Learning objectives

Explain how the division of labour and specialisation raise output per worker in firms, regions and countries

Calculate the change in output per worker when production is reorganised around specialised tasks, and interpret the result

Evaluate the costs of specialisation, such as monotony, loss of flexibility, dependence on other producers and exposure to a fall in demand

(A Level) State the functions of money (medium of exchange, unit of account, store of value, standard of deferred payment) and its characteristics, and explain how money removes the double coincidence of wants that barter needs