production and factors of production Flashcards
definition of production?
a process which involves converting resources into goods and services
define manufacturing?
the use of resources such as raw materials, components, fuel, labour and machinery to make physical goods
define intermediate goods?
goods produced for businesses
define capital goods?
goods used to produce other goods, such as tools, equipment, and machinery.
explain direct services?
Direct services are services aimed directly at consumers. They may also be called personal services and include IT services, financial services, personal services, care services, education, and transport.
explain commercial services?
commercial services are provided to support businesses with the distribution of products. there are trade and aids to trade
examples of aids to trade
services to support businesses in the trading process.
-communication services
-transport
-advertising
4 factors of production
-land
-labour
-capital
-enterprise
explain land
Businesses need land to locate their premises. land also means raw materials
explain labour
the workforce in the economy in the economy is labour. each worker is unique and has a different set of abilities that effect thier work
explain capital
capital is the artificial resources because its made by labour
define working capital
stocks of raw materials and components that will be used up in production
define fixed capital
refers to the factories, offices, shops, machines, tools, equipment and furniture used in production
4 roles of entrepreneurs?
-They come up with the business idea
-They are business owners
-They are risk-takers
-they are responsible for organising the three factors of production
