Other questions in this quiz

2. What is specialisation?

  • Where a country or business focus on the production of a limited range of products or services in order to gain greater efficiency
  • Where workers specialise in one particular task within the production process
  • Where producers improve the quality of their products to create a unique selling point

3. Which of these is a disadvantage of specialisation?

  • Decline in revenue, due to world prices for a product falling
  • Consumers have more choice
  • Increased competition encourages businesses to minimise costs and prices

4. What is the role of signalling?

  • To reduce the consumption of harmful goods
  • Suggests something important about the goods and services to potential buyers - eg. better quality, higher cost of production
  • Acts as an incentive for producers to supply the good for more profit

5. Which of these is NOT a disadvantage for division of labour?

  • A reduction in mass produced, standardised goods
  • Reduction in choice for consumers
  • Individuals may become bored of the repetitiveness, which could lead to lower output/quality
  • Higher levels of staff turnover

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