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9 Economics > 6 Production > Flashcards

6 Production Flashcards

1
Q

process of combining the factors of production to make goods and services

A

production

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2
Q

factors of production are also known as

A

inputs

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3
Q

factors of production

A

capital, entrepreneurship, land, labor (CELL)

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4
Q

topsoil and all natural resources

A

land

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5
Q

people with skill and abilities

A

labor

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6
Q

paid for what you can do

A

unskilled labor

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7
Q

repetitive, mostly physical labor

A

unskilled labor

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8
Q

no training

A

unskilled labor

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9
Q

paid for what they know and can do

A

skilled labor

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10
Q

has training, education, certification

A

skilled labor

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11
Q

mental skills

A

professional labor

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12
Q

pay for mostly knowledge with some physical labor

A

professional labor

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13
Q

tools, machinery, equipment

A

capital

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14
Q

discover profitable opportunities and be effective in pursuing them

A

entrepreneurship

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15
Q

land

A

rent

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16
Q

labor

A

wage

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17
Q

capital

A

interest

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18
Q

entrepreneurship

A

profit

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19
Q

does not change with the level of production

A

fixed cost

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20
Q

rent, interest, depreciation expense, indirect labor (people who don’t produce the products)

A

fixed cost

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21
Q

costs that change with the level of production

A

variable cost

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22
Q

raw materials, direct labor (producing products), utilities

A

varable cost

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23
Q

if more is produced, variable cost ____, if less is produced, variable cost ____

A

↑ ↓

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24
Q

sum of fixed and variable cost

A

total cost

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25
Q

expenses that aren’t just for one thing

A

overhead cost

26
Q

needed to operate

A

operating cost

27
Q

you are not yet capable of manipulating the factors of production

A

short run

28
Q

factors of production (short run)

A

fixed - most other factors
variable - only one or two factors

29
Q

you are capable of manipulating the factors of production

A

long run

30
Q

factors of production (long run)

A

fixed - none
variable - all factors

31
Q

AFC

A

TFC ÷ TP

32
Q

AVC

A

TVC ÷ TP

33
Q

ATC

A

TC ÷ TP

34
Q

MC

A

ΔTC ÷ ΔTP

35
Q

shows relationship between quantity of inputs and outputs

A

production function

36
Q

TQ of output produced for given quantity of input

A

total product

37
Q

additional output from additional input

A

marginal product

38
Q

output per each input of unit

A

average product

39
Q

TP₂

A

TP₁ + MP

40
Q

AP

A

TP ÷ VI

41
Q

MP

A

TP₂ - TP₁

42
Q

law of variable proportions is also known as

A

law of diminishing returns

43
Q

if a producer increases the units of a variable factor while keeping other factors fixed, then initially the TP increases at an ↑ rate, then at a diminishing rate, then at a ↓ rate

A

law of diminishing returns/law of variable proportions

44
Q

you cannot use in the long-run since all factors become variables

A

law of diminishing returns/law of variable proportions

45
Q

input ↑ = TP ↑ MP ↑

A

increasing returns

46
Q

for every additional input, both TP and MP ↑

A

increasing returns

47
Q

input ↑ = TP ↑ MP ↓

A

decreasing returns

48
Q

for every additional input, TP ↑ but MP ↓

A

decreasing returns

49
Q

input ↑ = TP ↓ MP -

A

negative returns

50
Q

for every additional input, TP ↓ and MP -

A

negative returns

51
Q

owned and managed by a single individual

A

single proprietorship

52
Q

advantageous in decision-making but limited in terms of production

A

single proprietorship

53
Q

owned by two or more individuals who agree to put their resources together to put up a business

A

partnership

54
Q

can be limited or general

A

partnership

55
Q

requires contract/formal agreement

A

partnership

56
Q

owned by many individuals known as stockholders

A

corporation

57
Q

has separate legal identity

A

corporation

58
Q

can be open/closed

A

corporation

59
Q

main objective is service to its members rather than profit

A

cooperative

60
Q

should have minimum of 15 members

A

cooperative

61
Q

RA 6938

A

cooperative code of the philippines

9 Economics (11 decks)

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