Additional Questions: Money-Exchange Systems | Introduction to Financial Markets for Class 9 PDF Download

Q.1. What led to the concept of specialization? 

Initially people were concerned about their survival. But over time, people and societies sought ways to improve their economic lot in life. They sought ways to produce more and better goods and services and to produce them efficiently so that better use was made of resources. As a result of this search for better ways, a major evolution occurred-specialization.

Q.2. What do you mean by specialization? 

Specialization means people become more skilled and can produce more.

Q.3. What led to the concept of division of labour? Explain it.

Through specialization and trade, more is produced, better goods and services are produced and the standard of living in a society rises. Specialization is associated with the concept of the division of labour, that is, labour becomes specialized and concentrated on certain activities. Rather than trying to do everything, a person concentrates his or her labour skills on one activity or on just a few activities in which he or she is good at.