Production Flashcards
What are inputs?
The materials that businesses use in the production process are called inputs. Inputs are things that you put into the production process to make goods and services.
What are outputs?
The products and services that the production process makes are called outputs.
What is labour?
The work that employees do to produce goods.
What is unskilled labour?
Work that does not require a high level of skills or independent judgement and that often involves physical labour.
Examples: Dishwashers and shelf packers.
What is semi-skilled labour?
Work that requires some skill training and independent judgement.
Examples: drivers, personal assistants, waiters.
What is skilled labour?
Work that requires a high level of training and independent judgement.
Examples: doctors, chemists’ architects, lawyers and CEOs.
What is human capital?
The knowledge and skills that workers get by working for a business. It increases as the workers experience in doing their jobs increases.
What are fair employment practices?
Employment practices that focus on good labour relations.
What are labour relations?
It is the way in which employees relate to each other in the work place.
Name 4 laws to ensure fair labour practice.
- Labour Relations Act (LRA)
- Basic Conditions of Employment Act (BCEA)
- Occupational Health and Safety Act (OHSA)
- Compensation for Occupational Injuries and Diseases Act (COIDA)
What is the remuneration for Labour?
Wages
What is capital?
The money the production process uses, as well as machinery and equipment.
Name 2 sources of capital ad explain each.
- Own capital: your own money that you have saved up or inherited and that you invested in your business.
- Borrowed capital: money borrowed from friends, family or a bank. You need to pay back this money with interest.
CAPITAL GOODS
Using c____ goods in the production process, businesses are able to produce m____ goods and
services of a b____ quality in less time. Machines can produce l_____ quantities (bulk) much quicker and c______ per unit. Machines have a l_____ lifespan, so people are continually inventing or improving equipment to produce goods f____ or with less effort. People feel threatened that their jobs will be t____ o____ by machines.
capital more better large cheaper limited faster taken over
What is the remuneration for capital?
Interest.
