Lesson 2.1.1

2.1.1 Specialisation, barter and money as a medium of exchange Quiz: OCR Economics, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Lesson 2.1.1, Specialisation, barter and money as a medium of exchange: 20 multiple choice questions for the OCR Economics (H460), Unit 2: The role of markets, written with Revision Ninja.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

Host this setFree Play

The 20 questions

  1. What primary requirement must be met for exchange to occur in a barter economy?

    • Double coincidence of wants
    • Common currency standard
    • Central bank approval
    • Fixed exchange rate

  2. Which function of money allows individuals to save purchasing power for future use?

    • Deferred payment
    • Unit of account
    • Store of value
    • Medium of exchange

  3. What term describes workers concentrating on a single task in a production process?

    • Barter system
    • Division of labour
    • Economies of scale
    • Comparative advantage

  4. According to Adam Smith, division of labour in a pin factory leads to a massive increase in what?

    • Worker boredom
    • Production costs
    • Productivity
    • Unit labour costs

  5. Which function of money enables people to express and compare the value of different goods?

    • Store of value
    • Means of barter
    • Unit of account
    • Medium of exchange

  6. If a worker produces 40 units in an 8-hour shift, what is their labour productivity per hour?

    • 48 units
    • 0.2 units
    • 320 units
    • 5 units

  7. What main problem associated with barter is overcome by using money as a medium of exchange?

    • Excess liquidity
    • Deflationary spiral
    • Inflationary pressure
    • High transaction costs

  8. Which characteristic of money ensures it can be easily carried around for daily transactions?

    • Divisibility
    • Scarcity
    • Portability
    • Durability

  9. Which function of money facilitates buying goods now and paying later?

    • Standard of deferred payment
    • Medium of exchange
    • Unit of account
    • Store of value

  10. What is a major disadvantage for workers resulting from extreme division of labour?

    • Monotony and boredom
    • Lower overall output
    • Decreased skill levels
    • Higher training costs

  11. Which characteristic ensures that money can be broken down into smaller denominations without losing value?

    • Acceptability
    • Durability
    • Divisibility
    • Portability

  12. What happens to total economic output when transitioning from self-sufficiency to specialisation?

    • Total output decreases
    • Output remains unchanged
    • Supply becomes unstable
    • Total output increases

  13. If labour productivity is 10 units per hour, how much output is produced in a 6-hour shift?

    • 600 units
    • 1.6 units
    • 16 units
    • 60 units

  14. Which characteristic of money prevents its value from collapsing due to unlimited supply?

    • Portability
    • Uniformity
    • Scarcity
    • Divisibility

  15. What is the primary microeconomic benefit of specialisation and division of labour?

    • Greater exchange stability
    • Higher tax revenues
    • Reduced inflation rates
    • Lower unit costs

  16. What type of economy relies entirely on direct exchange of goods without a universal medium of exchange?

    • Mixed economy
    • Free market economy
    • Command economy
    • Barter economy

  17. Which function of money is most severely eroded during periods of hyperinflation?

    • Unit of account
    • Legal tender
    • Store of value
    • Medium of exchange

  18. What major risk arises when an economy relies entirely on producing a single export?

    • Structural unemployment fall
    • Exchange rate appreciation
    • Vulnerability to shocks
    • Balanced trade surplus

  19. What key requirement must money meet so that people willingly take it in exchange for goods?

    • Physical intrinsic value
    • Fixed interest rate
    • Gold backing
    • General acceptability

  20. Which labour market failure frequently results from extreme occupational specialisation?

    • Voluntary unemployment
    • Wage equalisation
    • Occupational immobility
    • Geographical mobility

All OCR Economics quizzes