Specialisation, Division of Labour and Exchange
Nobody makes everything themselves. Learn how specialisation and the division of labour raise output, the drawbacks that come with them, and why money makes the exchange that specialisation depends on possible.
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Better together 🏭
Think about your breakfast. You did not grow the wheat, mill the flour or build the toaster. Other people specialised in each of those jobs, and you traded money for the result. This module is about how specialising and dividing up work makes an economy produce far more, the drawbacks it brings, and why money makes the trading possible.
Words to know 🔑
Four terms run through this topic. Learn them first.
Two sides of the coin ⚖️
The division of labour brings clear gains, but also real drawbacks.
Match the term 🔗
- Specialisation
- Division of labour
- Productivity
- Barter
- Concentrating on one task, product or job
- Splitting production into separate tasks for different workers
- The amount of output produced per worker
- Swapping goods directly without money
Name the idea 🎯
On a car assembly line, one worker fits only the wheels, all day long. What is this an example of?
- The division of labour
- Barter
- Productivity
- Structural unemployment
Why money matters 💰
Specialisation only works if people can trade what they make. Under barter you must find someone who wants exactly what you have and has what you want in return. Money solves this: it is a medium of exchange that everyone accepts, so specialised producers can buy and sell freely.
Match the word 🔀
- Assembly line
- Structural unemployment
- Exchange
- Unit cost
- A production line where each worker repeats one task
- Job loss when a particular skill is no longer needed
- Trading what you make for what you need
- The cost of making one item
Benefits of dividing the work ✅
Which TWO of these are BENEFITS of the division of labour? Choose all that apply.
- Workers become quicker and more skilled
- The cost of each unit falls
- Work can become boring and repetitive
- Workers become less flexible
Work out productivity 🔢
An interactive activity.
Why unit costs fall 🪜
An interactive activity.
Complete the sentences 🧩
Concentrating on one task or product is called _____. Splitting production into separate tasks for different workers is the _____. Output produced per worker is a measure of _____. Swapping goods directly without money is called _____. Money is useful because everyone accepts it as a medium of _____.
Spot the drawbacks 🖍️
An interactive activity.
What does it show? 🧭
An interactive activity.
Weigh it up ✍️
An interactive activity.