Production Flashcards
What is production?
This is the process of combining units of input and Human Resources to create goods and services which an be used or sold to satisfy the needs and wants of humans.
What are the scarce and limited resources collectively called?
The factors of production
What are the factors of production?
Land, labor, Capital, enterprise
What does Land include ?
It not only includes the land itself but also all the natural resources found above and under earth. Example : oil, sea, air, water, natural gas, limestone etc.
What are non renewable resources?
This is limited and fixed in supply which mean they can run out and can’t be reproduced.
What are renewable resources?
These can reproduce themselves or by man. Example: replanting of forest.
Define factors of production.
These are the resources needed by the business to produce goods and services.
Define Labour.
This is people’s physical and mental contribution to the creation of goods and services.
What is Labour force?
This is the total number of people employed or seeking employment in a country.
Define mobility of Labour.
This is the ability and willingness of workers to move to new areas for work to take up jobs in another industry.
Define Labour Turnover.
This is the num of employees who leave an organization over a period of time.
State the four types of labour skill level and an example for each.
Unskilled- garbage collectors
Semi skilled- waiters
Skilled- engineers
Managerial and professional skilled- accountant
Give 4 factors which impact the Labour supply.
1- Actual size and structure of the population
2- the birth rate and death rate of the country
3- Legislation on school leaving age and retirement age
4- Migration out and into the country .
What is capital?
Capital is the money invested in a business to produce a product. It also includes machines and equipment.
State the types of capital and there definitions with examples.
Fixed capital - this refers to assets that have a long productive life in the business which can be used many times. Example - building, machine
Working capital - this is assets needed for the day to day running of the business. This can be depleted sometimes after one use. Example - cash, raw materials needed in the production process
Venture capital - this is risk capital invested in a new business or one which is restructuring. The venture capitalist hopes to make a large return on investments but also bears the risk of losing the whole investment.
