1. SPECIALISATION (Known also as division of labour) BUSINESSESS ADVANTAGESDISADVANTAGES EMPLOYEES ADVANTAGESDISADVANTAGES

2. 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 student s 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 )

3. There are three employment sectors… Which sector does the job you chose fall into? PRIMARYSECONDARYTERTIARY

4. What does this graph tell us? In which sector are people employed?

5. ACTIVITY: Can you match the country/year to the pie chart?

6. The Primary Sector Why has employment decreased?

7. The Secondary Sector Why has employment decreased?

8. The Tertiary Sector Why has employment increased?

10. What is a market? Market – Any convenient set of arrangements by which buyers and sellers communicate to exchange goods and services. Key Term:

11. Who are the economic actors? What can you tell me about CONSUMERS?

12. Who are the economic actors? What can you tell me about WORKERS?

13. Who are the economic actors? What can you tell me about FIRMS?

14. Who are the economic actors? What can you tell me about GOVERNMENT?

15. Money & Exchange A medium of exchange A measure of value A store of value A method of deferred payment http://study.com/academy/lesson/the-four-basic-functions-of- money.html https://www.boundless.com/business/textbooks/boundless- business-textbook/the-functions-of-money-and-banking- 21/money-as-a-tool-123/functions-of-money-568-3194/

16. Forms of money in a modern economy