Production

Question 1

What are the four factors of production?

Answer 1

The four factors of production are:

1. Land: Natural resources used in production, such as minerals, water, and forests.
2. Labour: Human effort and skills used in production.
3. Capital: Man-made resources used in production, like machinery and tools.
4. Enterprise: The ability to organize and combine other factors of production to create goods and services, often involving risk-taking.

Question 2

What are the three main sectors of the economy?

Answer 2

The three main sectors of the economy are:

1. Primary sector: Involves the extraction of natural resources, such as farming, fishing, and mining.
2. Secondary sector: Involves manufacturing and processing raw materials into finished goods.
3. Tertiary sector: Involves providing services, such as retail, healthcare, and education.

Question 3

How has the importance of the primary, secondary, and tertiary sectors changed over time in developing economies?

Answer 3

In developing economies:

1. The primary sector initially dominates employment and output.
2. Over time, the secondary sector grows as industrialization occurs.
3. The tertiary sector remains smaller but gradually grows as the economy develops further.

Question 4

How has the importance of the primary, secondary, and tertiary sectors changed over time in developed economies?

Answer 4

In developed economies:

1. The primary sector becomes less significant due to mechanization and resource depletion.
2. The secondary sector declines as economies shift away from manufacturing to services.
3. The tertiary sector becomes the largest contributor to employment and output due to higher demand for services like finance, education, and healthcare.