Production

Question 1

factors in the production of goods and services

Answer 1

Factors of Production:
* land,
* labour,
* capital,
* enterprise/entrepreneurial skill.

Question 2

industries developed from the natural resources of Caribbean territories

Answer 2

Caribbean industries developed from agricultural produce, mining, fishing, and other areas.

Question 3

differentiate between production and productivity

Answer 3

Output produced versus output per unit of
input

Question 4

the importance of productivity

Answer 4

Productivity as it relates to the
* efficiency of labour, including its value and importance;
* the factors affecting the labour supply;
* human resource development (including education,
health, and working conditions);
* importance of a positive work ethic;
* use of capital to improve productivity;
* land use and declining productivity in the region.

Question 5

role of capital in production

Answer 5

Capital’s use in producing other goods;
* to undertake production that labour would not complete in a timely manner (for example, deep sea drilling).

Question 6

differentiate amongst types of capital

Answer 6

Fixed, working and venture capital.

Question 7

classify the different types and levels of production

Answer 7

(a) Types of Production:

(i) extractive (agriculture, mining, fishing);

(ii) construction (building);

(iii) manufacturing (assembling, refining); and,

(iv) service (transport, communication, tourism).

Question 8

classify the different types and levels of production

Answer 8

(b) Levels of production:

(i) subsistence;

(ii) domestic consumption;

(iii) surplus;

(iv) export.

Question 9

characteristics of cottage industries

Answer 9

Cottage Industries:

(a) home-based;

(b) mainly manual;

(c) small scale;

(d) use of local raw material; and,

(e) use of family members as labour.

Question 10

functions of small businesses

Answer 10

Functions of small businesses:

(a) Create employment.

(b) Provide services that large firms are not willing to produce.

(c) Niche markets.

Question 11

advantages of small business

Answer 11

(a) Examples of advantages:

(i) generate employment and incomes especially in rural
areas and economically depressed areas;

(ii) increase competition for larger firms; and,

(iii) introduce new products and ideas (for example, event planning).

Question 12

disadvantages of small business

Answer 12

(b) Examples of disadvantages:

(i) the business lacks expertise in certain areas;

(ii) owners find it difficult sourcing finance from financial institutions;

(iii) limited ability to service customers due to unavailable resources.

Question 13

how a business grows internally

Answer 13

Examples of internal growth:

(i) opening other outlets;

(ii) employing more workers;

(iii) increasing capital.

Question 14

how a business grows externally

Answer 14

Examples of external growth:

(i) joint ventures;

(ii) mergers; and,

(iii) takeovers/acquisitions.

Question 15

opportunities for and benefits of developing linkage industries

Answer 15

Linkage industries:

(a) backward; and,

(b) forward

Question 17

effects of growth on a business

Answer 17

Growth of a business and effects on:

(a) organisational structure;

(b) capital;

(c) labour;

(d) use of technology; and,

(e) potential for export.