Chapter 14 Flashcards
Factors of production
Resources used to produce goods and services, which include land, labour, capital and enterprise
Production
The process that involves converting resources into goods or services
Human Capital
Value of the workforce or an individual worker
Labour
People used on production
Working capital/ Circulating capital
Resources used up in production such as raw materials and components
Fixed capital
Stock of “Man made” resources, such as machines and tools, used to help make goods and services
Entrepreneurs
Individuals who organise the other factors of production and risk their own money in a business venture
Capital intensive
Production that relies more heavily on machinery relative to labour
Labour intensive
Production that relies more heavily on labour relative to machinery
Primary Sector
Production involving the extraction of raw materials
Secondary Sector
Production involving the processing of raw materials into finished and semi-finished goods
Tertiary Sector
Production of services in the economy
De-industrialisation
Decline in manufacturing