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  1. 1. WHAT IS MONEY • Money is any good that is widely used and accepted in transactions involving the transfer of goods and services from one person to another.
  2. 2. FUNCTIONS OF MONEY Medium of exchange : • Medium of exchange facilitates transactions. • Buyers uses it for purchases and sellers accept it.
  3. 3. STORE OF VALUE : •In order to be a medium of exchange, money must hold its value over time; that is, it must be a store of value. Money may not even be the best store of value because it depreciates with inflation. However, money is more liquid than most other stores of value because as a medium of exchange, it is readily accepted everywhere.
  4. 4. Unit of account: •A common unit for measuring the value of every good or service. • Money can be used as a means to compare the values of goods and services •You can use the monetary value assigned to a specific good or service to compare it to one offered by a different provider.
  5. 5. STANDARD FOR DEFERRED PAYMENTS: •An agreed unit of measure that enables people to contract for future payments and receipts.
  6. 6. CHARACTERISTICS OF MONEY: Durability : Durability means that the money must be able to withstand being used repeatedly.
  7. 7. PORTABILITY: • Portability means that individuals are be able to carry money with the and transfer it easily to other individuals.
  8. 8. DIVISIBILITY: • Divisibility means that the money can easily be divided into smaller units of value.
  9. 9. UNIFORMITY: • Uniformity means that all version of the same denomination of currency must have the purchasing power. •As an example, a 2005 $2 bill will still buy $2 worth of goods or services today.
  10. 10. ACCEPTABILITY : • Acceptability means that everyone must be able to use the money for transactions.
  11. 11. The condition in which resources are primarily devoted to specific tasks.
  12. 12. Not only individuals specialize but also,
  13. 13. ADVANTAGES AND DISADVANTAGES OF SPECIALISATION : Increase in output and productivity ADVANTAGES DISADVANTAGES Continuity of supply Increase in Profit and reduced costs Increased efficiency Increase in export revenue Globally competitive Fashion change There will be loss if demand decreases Greater cost of training workers Technological breakdown may reduce or stop the production Less flexible due to specializing only in specific task
  14. 14. The division of labor occurs where production is broken down into many separate tasks. DIVISION OF LABOUR
  15. 15. PROS AND CONS OF DIVIDION OF LABOUR: More goods and services can be produced Full use is made of everyone’s ability Time is saved It allows the use of Machinery Work becomes boring Workers may feel alienated Products are all the same People become too dependent on each other Higher productivity May lose job if product is no more demanded in market