CH3 - TRANSFORM RESOURCES➡️G&S Flashcards
FOP
4 elements: Capital Enterprise Land Labour
RESOURCES
The elements that go into producing g&s
CAPITAL
Goods that are made in order to produce other goods e.g machinery, computer systems etc.
ENTERPRISE
The act of the entrepreneur in bringing other factors of production together in order to create goods and services.
LAND
Incorporates all the natural resources that can be used for production.
LABOUR
Physical and mental effort involved in production e.g those who put in personal, commercial and manual labour in producing finished goods.
IMPROVING EFFICIENCY OF THE FOP
Greater education and training of workforce.
Increase investment in capital equipment.
Using renewable or recyclable resources
Improving fertility of the land
OUTPUT
The finished products resulting from the transformation process.
Natural resources
Semi-finished and finished goods
Services
PRIMARY SECTOR
Extracting/exploiting raw materials from the land e.g farming, fishing, forestry, mining, quarrying.
SECONDARY SECTOR
Manufacturing and refining those raw materials into finished or semi-finished goods e.g. Paper mills, oil refineries, textile manufacturers.
TERTIARY SECTOR
Organisations involved in providing services to customers.
PRODUCTION
The process and methods used to transform tangible and intangible inputs into goods and services.
FEEDBACK
Encouraging or adverse information used to make any necessary alterations to the production process in which a business relies on about the quality of its goods and services.
ADDING VALUE
The process of increasing the worth of resources my modifying them.
ADDED VALUE
Sales Revenue - Cost of input
