3.1.2-Resource allocation Flashcards
What are factor (industrial) markets?
The buying and selling of land, labour and capital
What are product (consumer) markets?
A market for final goods and services
What is the primary sector?
Industries involved in extracting raw materials
What is the secondary sector?
Industries involved in manufacturing or construction
What is the tertiary sector?
Industries that provide a service
What is division of labour?
The allocation of workers to specific tasks in the production line
What is exchange?
Where buyers and sellers come together in a market place to negotiate prices
What is job rotation?
Where employees move between departments
What is specialisation?
Where a country, business or worker focuses on the production of a limited range of products or services in order to gain greater efficiency; with the aim of increasing productivity and lowering costs
What is a market?
An opportunity for buyers and sellers to meet and determine the price of a good or service
What are the three functions of price?
- Rationing-allows some people to afford the product/service but prevents others from being able to make the purchase
- Signalling-the price signals something about the good/service that is important to potential buyers-affects price and demand
- Incentive-the price of a good or service can act as an incentive for a supplier to provide it
What are commodity markets?
The buying and selling of products from the primary sector of industry (resources)
What are niche markets?
Markets that focus on providing partiular types of product or supplying to a particular group of people
What are the 3 functions of markets?
- Price determination
- Resource allocation
- Controlling supply and demand
What are the benefits and costs of specialisation for producers? 3 of each
Benefits:
* Higher output
* Higher productivity
* Higher quality
* Bigger market
* Economies of scale
* Time saving
Costs:
* Costs may eventually rise
* Dependency
* Failure of exchange
* High staff turnover
