Chapter 16 - 18

Question 1

Capital Intensive

Answer 1

where production relies more heavily on machinery relative to labour

Question 2

Entrepreneur

Answer 2

an individual who organises the other factors of production and risks their own money in a business venture

Question 3

Factors of Production

Answer 3

the resources used to produce goods and services. They include land, labour, capital, and enterprise

Question 4

Fixed Capital

Answer 4

the stock of ‘man-made’ resources such as machines and tools used to help make goods and services

Question 5

Human Capital

Answer 5

the value of the workforce or an individual worker

Question 6

Labour

Answer 6

the people used on production

Question 7

Labour Intensive

Answer 7

where production relies more heavily on labour relative to machinery

Question 8

Production

Answer 8

a process which involves converting resources into goods or services

Question 9

Productivity

Answer 9

the amount of output that can be produced with a given quantity of resources

Question 10

Working Capital

Answer 10

resources used up in production such as raw materials and components

Question 11

De-industrialisation

Answer 11

the decline in manufacturing

Question 12

Primary Industry

Answer 12

production involving the extraction of materials from the earth

Question 13

Secondary Industry

Answer 13

production involving the conversion of raw materials into finished and semi-finished goods

Question 14

Tertiary Industry

Answer 14

the production of services in the economy

Question 15

Average Costs

Answer 15

the cost per unit of output

Question 16

Costs

Answer 16

the expenses incurred when producing goods and services

Question 17

Fixed Costs

Answer 17

costs that do not vary with the level of output

Question 18

Total Costs

Answer 18

fixed costs and variable costs added together

Question 19

Variable Costs

Answer 19

costs that rise as output levels are increased