1.2 Business Economics : Unit 14 -16 Flashcards
1
Q
- What is production?
A
- a process that involves converting resources into goods or services.
2
Q
- What do you mean by factors of production?
A
- resources used to produce goods and services, which include land, labor, capital and enterprise.
3
Q
- What are the 4 factors of production?
A
- Land
- Labor
- Capital
- Enterprise
4
Q
- What is human capital?
A
- value of workforce or an individual worker.
5
Q
- What is labour?
A
- people used in production.
6
Q
6, What are the two types of capital?
A
- Working capital/ circulating capital
- Fixed capital
7
Q
- What is capital?
A
Capital is the artificial resource used for production
8
Q
- What is working capital/ circulating capital?
A
they are resources used up in the production such as raw materials and components.
9
Q
- What is fixed capital?
A
- stock of “man-made” resources, such as machines and tools, used to help make goods and services.
10
Q
- Who are entrepreneurs?
A
- individuals who organize the other factors of production and risk their own money in a business venture.
11
Q
- What is land?
A
- a plot of land on which to locate or operate their premises.
12
Q
- What are the two types of production?
A
- capital intensive production
- labour intensive production
13
Q
- What is capital intensive production?
A
-production that relies more heavily on machinery relative to labor.
14
Q
- What is labour-intensive production?
A
- production that relies more heavily on labor relative to machinery.
15
Q
- What is primary sector?
A
production involving extraction of raw materials from the earth.
16
Q
- What are the 4 examples in primary sector?
A
- Agriculture
- Fishing
- Forestry
- Mining and quarrying
17
Q
- What are assembly plants?
A
- factory where parts are put together to make a final product
18
Q
- What is the secondary sector?
A
- production involving the processing of raw materials into finished and semi- finished goods.
19
Q
- What is tertiary sector?
A
- production of services in the economy.
20
Q
- What are the 6 examples in the tertiary sector?
A
- commercial services
- financial services
- household services
- leisure services
- professional services
- transport
21
Q
- What is de-industrialization?
A
- decline in manufacturing.
22
Q
- What are the 4 reasons for de-industrialization?
A
- people prefer to spend their income on services rather than manufactured goods.
- fierce competition in the production of manufactured goods from developing countries.
- Growth of the public sector.
- Advances in technology in manufacturing.
23
Q
- What is productivity?
A
- rate at which goods are produced, and the amount produced in relation to the work, time, and money needed to produce them.
24
Q
- What are the 5 ways to affect the productivity of land?
A
- Fertilisers and pesticides
- drainage
- irrigation
- reclamation
- genetically modified crops
25
Q
- 4 ways to improve labor quality?
A
- training
- improved motivation
- improved working practices
- Migration
26
Q
- What is division of labour?
A
breaking down of the production process into small parts with each worker allocated to a specific task.
27
Q
- What is specialization?
A
- production of a limited range of goods by individuals, firms, regions or countries.
28
Q
- Name 3 advantages of division of labor to worker.
A
- worker is more skilled due to repetition.
- more likely to get paid more.
- more job satisfaction.
29
Q
- Name 3 disadvantages of division of labor to worker.
A
- work can become boring because it is repetitive.
- health implications for workers.
- too specialized is rick of unemployment
30
Q
- Name 3 advantages of division of labor to businesses.
A
- efficiency.
- less mistakes= less wastage as a result of specialization.
- Increased productivity.
31
Q
- Name 3 disadvantages of the division of labor to businesses.
A
- too repetitive and boring poor motivation. affects quality.
- Too much interdependence may interrupt production process.
- Loss of flexibility.
32
Q
- What are costs?
A
expenses that must be met when setting uo and running a business.
33
Q
- What is fixed cost?
A
(overheads) costs that do not vary with the level of output.
34
Q
- What is a variable cost?
A
costs that change when out put levels change.
35
Q
- What do you mean by total cost?
A
fixed costs and variable costs added together.
36
Q
- What do you mean by average cost?
A
Average cost is the cost of producing a single unit of output.
37
Q
- What is profit?
A
Profit is the difference between total revenue and total cost.
