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SPECIALISATION (Known also as division of labour)
BUSINESSESS
ADVANTAGES
DISADVANTAGES
EMPLOYEES
ADVANTAGES
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 how
firms 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 to
Adam Smith
b) The advantages and disadvantages of specialisation and
the division of labour in organising production
c) The advantages and disadvantages of specialising in the
production of goods and services to trade
d) The functions of money (as a medium of exchange, a
measure of value, a store of value, a method of deferred
payment)
There are three employment sectors…
Which sector does
the job you chose fall
into?
PRIMARY
SECONDARY
TERTIARY
In which sector are people employed?
What does this graph tell us?
ACTIVITY: Can you match the country/year to the pie chart?
Why has employment decreased?
The Primary Sector
Why has employment decreased?
The Secondary Sector
Why has employment increased?
The Tertiary Sector
What is a market?
Key Term:
Market – Any convenient set of arrangements by
which buyers and sellers communicate to
exchange goods and services.
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
http://study.com/academy/lesson/the-four-basic-functions-ofmoney.html
https://www.boundless.com/business/textbooks/boundlessbusiness-textbook/the-functions-of-money-and-banking21/money-as-a-tool-123/functions-of-money-568-3194/
A medium of exchange
A measure of value
A store of value
A method of deferred payment
Forms of money in a modern economy
Forms of money in a modern economy