Chapter 14/15 Flashcards
FoP+ sectors of econ/ Productivity+ DoL
Define productivity.
Rate at which goods/services produced
Formula for productivity?
Productivity= Total output/no. of workers
What factors affect productivity?
Land
Labour
Capital
Enterprise
How do land and labour affect productivity?
Land- Pesticides/fertilizers= produce more.
Labour- Efficiency, training, motivation (piece rates, job rotation), more management.
How does capital affect productivity?
New technology inc efficiency. Primary sector - tractors/lifting equipment.
Secondary- Robots for repetitive jobs.
Tertiary- Online shopping.
What is division of labour?
Dividing/breaking down the production line into smaller parts so that workers can have a specific task.
How does division of labour increase productivity?
Division of labour — concentration on task— specialization — efficiency inc — more output — productivity increases
Define specialisation.
Production of a limited range of goods by individuals, firms or nations.
What are the advs of division of labour to the worker?
- More skilled at that task due to repetition, more confidence.
- Confidence = job satisfaction + motivation.
What are disadvs of division of labour to the worker?
- Repetition causes boredom, job dissatisfaction.
- If they become too specialised, risk of unemployment.
What are advs of division of labour to the business?
-Efficiency increases, as workers more experienced.
- Production time decreases since workers don’t need to move stations.
What are the disadvs of division of labour to the business?
-Boredom may cause high turnover rate/ absences.
- Less flexibility, of absent, no one can replace.
- One stage breaks down, then all break down after.
What is land as a FoP?
- Land to locate factories/ shops/ car parkings.
- Natural resources + materials.
What is labour as a FoP?
- Workforce, human capital.
What is capital as a FoP?
- Artificial resource.
- Machinery
What is enterprise as a FoP?
Business idea, business runner and organizer.
What is the primary sector responsible for?
Getting raw materials from the earth. Agriculture, fishing and forestry.
What is the secondary sector responsible for?
Converting raw materials into semi-finished/finished goods.
What is the tertiary sector responsible for?
Production of services in the economy.
Why do developing countries have a smaller tertiary sector?
Not much money so weak public sector, which is responsible for creating tertairy sector.
