Chapter 16 - 18 Flashcards
Capital Intensive
where production relies more heavily on machinery relative to labour
Entrepreneur
an individual who organises the other factors of production and risks their own money in a business venture
Factors of Production
the resources used to produce goods and services. They include land, labour, capital, and enterprise
Fixed Capital
the stock of ‘man-made’ resources such as machines and tools used to help make goods and services
Human Capital
the value of the workforce or an individual worker
Labour
the people used on production
Labour Intensive
where production relies more heavily on labour relative to machinery
Production
a process which involves converting resources into goods or services
Productivity
the amount of output that can be produced with a given quantity of resources
Working Capital
resources used up in production such as raw materials and components
De-industrialisation
the decline in manufacturing
Primary Industry
production involving the extraction of materials from the earth
Secondary Industry
production involving the conversion of raw materials into finished and semi-finished goods
Tertiary Industry
the production of services in the economy
Average Costs
the cost per unit of output
