Demand for FOP

Question 1

labour intensive production:

Answer 1

High proportion of labour is used in the production process compared to captial e.g. restaurants and textile industry

Question 2

capital intensive production:

Answer 2

High proportion of captial is used in the production process compared to labour e.g. car and food-processing industry

Question 3

production:

Answer 3

process of making goods/services

Question 4

productivity:

Answer 4

output produced per worker per time period

Question 5

productivity may increase because of (4):

Answer 5

• education and training
• better tech
• use of capital
• use of fertilizers (agriculture)

Question 6

what are the four sectors of the economy?

Answer 6

Primary Sector
Secondary Sector
Tertiary Sector
Quarternary Sector (not in syllabus!)

Question 7

Primary sector definition:

Answer 7

Sector which consists of all firms involved in extraction of raw materials e.g. mining, agriculture, fishing, forestry

Question 8

Secondary sector definition:

Answer 8

Sector which consists of all firms involved in manufacturing or turning raw materials into goods e.g. factories, construction

Question 9

Tertiary sector definition:

Answer 9

Sector which consists of all firms involved in the sales, communication, transport and service industry e.g shops, hotels, entertainment, telecommunication