Lesson 1.1.5
1.1.5 Specialisation and the division of labour Quiz: Pearson Edexcel Economics, Unit 1
20 questions
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Lesson 1.1.5, Specialisation and the division of labour: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 1: Theme 1: Introduction to markets and market failure, written with Revision Ninja.
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The 20 questions
-
What term describes individuals or nations concentrating on producing a narrow range of goods?
- Division of labour
- Specialisation
- Productivity
- Diversification
-
Which economist famously illustrated the division of labour using a pin factory example?
- John Keynes
- Friedrich Hayek
- Karl Marx
- Adam Smith
-
What is a major advantage of the division of labour for a firm?
- Higher labour turnover
- Lower worker boredom
- Greater job variety
- Higher productivity
-
What is a potential disadvantage of the division of labour for workers?
- Monotony and boredom
- Slower production speed
- Increased task variety
- Lower skill levels
-
Which function of money allows goods and services to be traded without barter?
- Unit of account
- Store of value
- Deferred payment
- Medium of exchange
-
Which function of money provides a common measure for pricing and comparing goods?
- Deferred payment
- Store of value
- Unit of account
- Medium of exchange
-
Which function of money enables people to borrow and pay back debts over time?
- Store of value
- Deferred payment
- Unit of account
- Medium of exchange
-
What is a key risk for a country that specialises in producing a single commodity?
- Lower efficiency
- Price volatility risk
- Higher unit costs
- Increased trade surplus
-
What does international trade based on comparative advantage enable countries to achieve?
- Inward PPF shift
- Lower overall output
- Consumption beyond PPF
- Self-sufficiency
-
Splitting production into specific sequential tasks among workers is known as what?
- Comparative advantage
- Economies of scale
- Vertical integration
- Division of labour
-
What risk arises when an economy over-specialises in a declining industry?
- Structural unemployment
- Frictional unemployment
- Productive efficiency
- Demand-pull inflation
-
Which function of money allows consumers to compare the relative worth of different goods and services?
- Medium of exchange
- Deferred payment
- Store of value
- Measure of value
-
Which function of money enables individuals to save purchasing power for use in the future?
- Store of value
- Deferred payment
- Medium of exchange
- Measure of value
-
What requirement makes trading goods directly for other goods in a barter system difficult?
- Double coincidence
- Price controls
- Inflation risk
- Trade tariffs
-
What is a major advantage for a nation specialising in goods it produces most efficiently?
- Greater self-sufficiency
- Higher tariff barriers
- Lower opportunity cost
- Increased trade deficits
-
What is a main risk for a country that specialises heavily in a single export product?
- Surplus capacity
- Vulnerability shocks
- Lower efficiency
- Excessive liquidity
-
According to Adam Smith, how does the division of labour increase worker productivity?
- Higher wage rates
- Reduced capital investment
- Greater job turnover
- Increased task dexterity
-
Why does deep specialisation in production require access to a large market?
- Diminishing returns
- Reduced competition
- Higher tax revenues
- Economies of scale
-
According to Adam Smith, what limits the extent of the division of labour in an economy?
- Wage rates
- Government spending
- Market size
- Total population
-
How does money facilitate a higher degree of specialisation in a modern economy?
- Reduces transaction costs
- Prevents price inflation
- Guarantees economic growth
- Eliminates opportunity cost
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