Chap 22: COP&COD

Question 1

What is the Chain of production?

Answer 1

The various production or processing stages that a good or service goes through before being sold to the consumer

Question 2

Explain what the primary sector is and give an example

Answer 2

Industries who extract raw materials from the land or sea eg. Farming, fishing & mining

Question 3

Explain what the secondary sector is and give an example

Answer 3

Manufacturing and constructing, using the goods produced by the primary sector and Change them into finished/semi-finished products eg. Clothing, food processing and building

Question 4

Explain what the tertiary sector is and give an example

Answer 4

Provides services to all other sectors for the economy eg. Mechanics and accounts

Question 5

Give 4 examples of chains of production and one product for each.

Answer 5

Manufacturer, wholesaler, retailer, consumer
Bread and milk from a small retailer 
Manufacturer, retailer, consumer 
Bread and milk from a large retailer 
Manufacturer, consumer 
Airplane 
Foreign manufacturer, import agent, wholesaler, retailer, consumer 
Cars

Question 6

What is a wholesaler

Answer 6

A company or person that buys large quantities of goods from many manufacturers and sells them in smaller quantities to retailers

Question 7

What is a cash and carry wholesaler?

Answer 7

Act as supermarkets to retailers

Consumers not permitted to shop in them

Question 8

How do cash and carry wholesalers differ to normal wholesalers?

Answer 8

They do not give credit
They do not deliver goods
Operate on a self-service basis
Provide ample parking space for retailers
Price tends to be lower than traditional wholesalers

Question 9

What is a retailer?

Answer 9

Somebody (or an outlet) who sells finished goods to consumer

Question 10

Give one example of a chain of production

Answer 10

Farmer grows wheat, sells it to miller, miller makes flour, sells it to baker, baker bakes cakes, sells it to wholesaler, sells it to retailer, sells it to consumer