Production

Question 1

What is production?

Answer 1

Production is the process of converting resources into goods or services using factors of production, which include land, labour, capital, and enterprise.

Question 2

What are the factors of production?

Answer 2

The factors of production are land, labour, capital, and enterprise. Land refers to the resources used to produce goods and services, labour is the workforce of the economy, capital refers to the stocks of raw materials and fixed assets used in production, and enterprise involves the organization of the other three factors of production.

Question 3

What is labour-intensive production?

Answer 3

Labour-intensive production is when a business uses more labour than capital to produce goods and services. This method is often chosen because labour can be cheaper than capital.

Question 4

What is capital-intensive production?

Answer 4

Capital-intensive production is when a business uses more capital than labour to produce goods and services. This method is often chosen because capital can be more efficient than labour.

Question 5

What is the primary sector?

Answer 5

The primary sector involves economic activity that extracts raw materials from the earth, such as agriculture and mining

Question 6

What is the secondary sector?

Answer 6

The secondary sector involves economic activity that converts raw materials into finished or semi-finished goods, such as manufacturing, processing, and construction.

Question 7

What is the tertiary sector?

Answer 7

The tertiary sector involves economic activity that provides services, such as commercial, household, leisure, professional, and transport services