Production Flashcards
1
Q
Define production
A
The process of converting raw materials (inputs) into finished goods (output).
2
Q
Define productivity
A
A measure of production. It measures how much output can be gained from given input
3
Q
Why is productivity important?
A
saves money, maximizes efficiency
4
Q
Types of Production
A
primary
secondary
tertiary
5
Q
Levels of Production
A
subsistence, domestic, surplus
6
Q
What can happen to a business if productivity increases?
A
profits, production and wages can increase
prices can decrease
7
Q
What happens to the national economy when productivity increases?
A
output increases
exports increase
inflation is reduced
8
Q
Define capital goods
A
A good that can be used as input for another good
