Creation of Wealth Flashcards
1
Q
What is the production chain?
A
Is the stages a product passes through before it has been made into a product.
2
Q
What are the three parts in the chain?
A
Input, processes, and outputs.
3
Q
How is wealth created?
A
By adding value to each stage of the production process.
4
Q
Give an example of creation of wealth?
A
Trees in wood=£0 to buy and £100,000 to sell
Planks of wood=£100,000 to buy and £500,000 to sell
Making chairs=£500,00 to buy and £1,000,000 to sell
