Production

Question 1

Definition of production

Answer 1

as the act of transforming or converting raw materials into finished/final products
desired by man.

Question 2

Definition of specialization

Answer 2

of different persons doing different jobs especially the job which they not only like best, but for
which they have the necessary skills for.

Question 3

Advantages of specialization

Answer 3

a) Specialization can lead to increased output which means more profit.
b) It saves time and tools.
c) the product is more identical or consistent in quality.
d) It allows a worker to develop his/her innate ability to the full extent.
e) It leads to the development of newer and better methods.

Question 4

Disadvantages of specialization

Answer 4

a) Disruption in production may take place if one person in the chain of the process is absent, ill or incompetent.
b) Motivating a worker who does the same task every day is difficult.
c) Size of the market limits specialization especially if the market is too small.
d) Occupational immobility which means that it is difficult to find a job other than the one which you have
specialized in if you become unemployed.

Question 5

Difference between production and productivity

Answer 5

Difference between production and productivity
Production refers to the total amount of goods and services generated over a given period, while productivity is
the output per person per hour.

Question 6

Levels of Production

Answer 6

1. Subsistence/traditional level production
   Traditional production is the situation in which people in the past sought to produce/provide for their basic
   survival, no more, no less.
2. Domestic/local level production
   Domestic production is also called local production and uses local inputs of land, labour and capital to supply to
   the local papulation.
3. Surplus/export level production
   This refers to production over and above the domestic needs of a country as excess output is sold to other
   countries.

Question 7

Types of production

Answer 7

1. Primary production (extractive industries)
   Secondary production (manufacturing and construction industry)
   Tertiary production (services industry)

Question 8

Primary production

Answer 8

This is the first stage of production and is concerned with the extraction of basic resources or raw materials from
the land, sea or atmosphere.
Examples of primary production include:
 Oil drilling in South East Trinidad
 Banana cultivation in St. Lucia
 Bauxite mining in Jamaica

Question 9

Secondary proiduction

Answer 9

This involves the conversion/manufacturing of the raw materials gathered from primary production into capital or consumer goods
Examples of secondary production include:
 Harvested sugar cane is converted into sugar in Barbados.
 Natural gas is converted into methanol in Trinidad.

Question 10

Tertiary production

Answer 10

This type of production involves all the services which add utility to goods produced and may be seen as the link
between the producer and consumer.
Examples of tertiary production include:
 Transportation
 Advertising
 Banking
 Insurance

Question 11

Factors of production

Answer 11

These include:
1. Land/natural resources
2. Labour/human resources
3. Capital/man-made resources
4. Entrepreneur/enterpriseF

Question 12

Land/ naturall resource

Answer 12

Land refers to natural resources e.g. soil, water, minerals etc. that are used in production of goods and services.
Resources can either be renewable or non-renewable.

Renewable Resources include:
 Fish via fish farming
 Forest via reforestation
 Water via rainfall
Non-Renewable Resources include:
 Oil
 Asphalt
 Limestone

Question 13

Natural resources

Answer 13

Natural Resources of Caribbean Countries
Natural Resource Country of Origin Related Industry
Asphalt Trinidad Road-building
Bauxite Jamaica Aluminum manufacturing
Crude oil T&T,Barbados Petroleum products
Diamond Guyana Jewelry
Forestry Guyana Lumber
Gypsum Jamaica &Guyana construction

Question 14

Labour/human resources

Answer 14

2. Labour/Human Resources
   Labour refers to human effort of any kind, that is, skilled, unskilled, semi-skilled, manual, non-manual used in
   production.

Question 15

Productivity

Answer 15

Productivity refers to output per man per hour and is measured:
Output x 100
Input
Benefits/Advantages of High Level of Productivity include:
 Increased productivity enables higher wages to be paid.
 Productivity in all sectors lead to long-term growth.
 Greater productivity promotes a healthy attitude towards work, that is, positive work ethic.
 Greater productivity lowers price for goods which means more competition, which is beneficial to the consumer.

Factors affecting/determining/influencing productivity or efficiency include:
 Level of education and training of workers – this will determine how easy someone is to train. A trained employee works faster.
 Working conditions – if conditions are ideal and the employee is comfortable in his/her working environment, then productivity increases.
 Health of the workforce – a healthy worker produces more than an unhealthy worker.
 Attitude towards work – if a worker has ambition or an honest attitude towards work, this work ethic increases productivity.
 Good management – if the managers are to place the correct workers in a job, or organize the company so that the level of production increases with each worker, productivity should rise.

Question 16

Migration

Answer 16

Migration refers to the changing of one’s place of abode from one country to another.
Migration comprises of the following:
 Emigration – the term used to describe leaving one’s native country to live in another.
 Immigration – the term used to describe foreigners arriving to live in a new country.

Positive effects of migration include:
 Labour shortages can be eased in the case of immigration.
 Immigrants add to the pool of skills available.
 Labour brings with it knowledge and experience as well as capital, all of which benefit the country (in the case of
immigration)
Negative effects of migration include:
 If immigrants are unemployed or unemployable due to lack of skills and knowledge, it will put a strain on the social service network.
 Emigration leads to the problem of the brain drain, as the brightest and best leave, seeking better paying opportunities ahead.
 Countries from which individuals leave may suffer labour shortages/vacancies (in the case of emigration).
Reasons for migration include:
 To seek better job opportunities.
 To seek a higher standard of living.

Question 17

Labour

Answer 17

The labour supply may be defined as the total hours workers wish to work at a given real wage rate.
Factors that affect the labour supply are:
 The size of the population – the larger the population, the larger the supply of labour, and the converse is also true.
 The proportion of the population willing to work – those who continue to study after the age of 16, housewives and the disabled decrease the supply of labour.
 The number of hours worked by each individual – overtime increases the supply of labour.
 The opportunity to obtain education and training – this determines both the quantity and quality of labour available
to a country.

Question 18

3. Capital/Man-made Resources

Answer 18

Capital as a factor of production describes resources that are necessary for the further production of goods and
and services.
Types of capital include:

 Physical capital – refers to investments made in assets for the aim of generating future streams of revenue.
Types of physical capital include:
- Fixed capital – usually refers to capital which is long lasting and which does not change its form during the course of production e.g. oil rigs, tractors, snow cone machine, etc.
- Working capital – is changed in the course of production e.g. raw materials, cotton, plant seeds, etc.
- Financial capital – refers to the money capital which the company uses to run the day to day operation.
 Social capital – means the instruments that aim to benefit the entire community or the welfare of individuals,
without necessarily bringing any direct returns.