Production

Question 1

What does the primary sector involve?

Answer 1

Any activities that extract resources from the Earth to provide essential raw materials

Question 2

What does the secondary sector involve?

Answer 2

Any activities that turn raw materials/semi-finished goods into finished goods

Question 3

What does the tertiary sector involve?

Answer 3

Any business that provides a service

Question 4

Define the term ‘de-industrialisation’.

Answer 4

The decline in manufacturing and growth of service industries

Question 5

Give 5 reasons why de-industrialisation occurs.

Answer 5

Service jobs being more skilled and paying more

Automation and machinery replacing workers

Countries’ low labour costs (outsourcing)

Demand rising with GDP per capita increasing

Governments growing stronger

Question 6

What is labour-intensive production?

Answer 6

A production process that is heavily reliant on human capital

Question 7

What is capital-intensive production?

Answer 7

A production process that is heavily reliant on machinery and technology

Question 8

What is the equation for labour productivity?

Answer 8

Labour Productivity = Total Output ➗ Number of Workers

Question 9

Name 4 ways companies can increase productivity.

Answer 9

Retraining workers
Introducing new working practices
Improving motivation
Using new efficient machinery

Question 10

Name 2 examples of using education and training to improve labour productivity.

Answer 10

Governments investing in education and vocational training

Businesses investing in training their workers

Question 11

Name 2 examples of how companies can improve motivation to improve labour productivity.

Answer 11

Providing financial incentives - bonuses, performance-related pay

Providing non-financial incentives - teamwork, empowerment

Question 12

Name 2 examples of how companies can improve working practices.

Answer 12

Improving production efficiency - changing layout or processes
Improving worker flexibility - time or tasks

Question 13

Name 4 problems with education and training.

Answer 13

Time management - less productive at teaching
Expensive
Improvement in productivity not guaranteed
Teachers can leave after it

Question 14

Name 4 problems with improving motivation/empowerment.

Answer 14

Too much pressure - lack of productivity
Bad decisions
Teams may not work effectively
Doesn’t specialise workers

Question 15

Name 3 problems with introducing new working practices.

Answer 15

Could affect quality of goods and services
Difficult to recruit
Stressful and time-consuming

Question 16

Define the term ‘division of labour’.

Answer 16

The breaking down of the production process into small parts with each worker allocated to a specific task

Question 17

Name 4 advantages of division of labour for workers.

Answer 17

Increased productivity
Better skilled ‘experts’
Higher wages as specialists
Produces better quality goods

Question 18

Name 4 disadvantages of division of labour for workers.

Answer 18

Can lead to boredom/monotony
Overspecialisation
Loss of motivation
Absenteism

Question 19

Name 3 advantages of division of labour for firms.

Answer 19

Better quality goods and services
Higher profits
Workers are easier to train and replace

Question 20

Why is interdependence bad for firms?

Answer 20

It can lead to a breakdown of the production process

Question 21

Define ‘specialisation’.

Answer 21

The focus on a particular task, area, operation or product