Available online
Description
Prof Brooman, Professor of Economics at the Open University, begins with examples showing that economics is concerned with scarce resources. He suggests that social co-operation in the form of sp...ecialisation will increase production, and using animated film, demonstrates this effect with an example of simple division of labours between families taken from the correspondence material. Since bartering between many specialist producers becomes complicated and unmanageable, we are shown how the use of money can facilitate the exchange of goods.
Prof Brooman, Professor of Economics at the Open University, begins with examples showing that economics is concerned with scarce resources. He suggests that social co-operation in the form of sp...ecialisation will increase production, and using animated film, demonstrates this effect with an example of simple division of labours between families taken from the correspondence material. Since bartering between many specialist producers becomes complicated and unmanageable, we are shown how the use of money can facilitate the exchange of goods.
| Module code and title: | D100, Understanding society: a foundation course |
|---|---|
| Item code: | D100; 03 |
| First transmission date: | 24-01-1971 |
| Published: | 1971 |
| Rights Statement: | |
| Restrictions on use: | |
| Duration: | 00:24:30 |
| + Show more... | |
| Producer: | Michael Philps |
| Contributors: | F S Brooman; Michael Drake |
| Publisher: | BBC Open University |
| Keyword(s): | Economics; Trade |
| Footage description: | Michael Drake introduces the unit with a definition of economics and discusses the implications of allocation of limited resources. Brooman continues discussion on allocation of limited resources for the maximum benefit of society. He gives simple examples of unlimited land being allocated for various uses and a limited amount land allocated for the same uses. Brooman shows a diagram to illustrate this. He shows another diagram which illustrates the allocation of limited labour resources in production of goods. Brooman, with the aid of animated diagrams, demonstrates the advantages of social co-operation in the production of goods. Higher output and more efficient production results. Two hypothetical families (the Browns and the Greens) are used in this discussion. Each family is able to manufacture both shoes and cloth but they have different productivity ratios. Brooman demonstrates that through specialisation and exchange by barter at an agreed exchange ratio, both families will increase their commodity stock. Brooman shows that even with different efficiency of production, both families are still better off by specialising and trading as long as the exchange ratio remains favourable. The degree to which specialisation ought to be taken depends on the size of the market. The larger the market, the greater the specialisation of the individual production unit. In a large market money must be introduced as barter becomes unmanageable. An animated diagram illustrates this point. Brooman discusses, in general terms, the effects of specialisation on today's society. The drawbacks as well as benefits of specialisation are discussed. Summary by Drake. |
| Master spool number: | 6LT/70125 |
| Production number: | 00520_1238 |
| Videofinder number: | 413 |
| Available to public: | no |
