Production and productivity

Question 1

Factors of production

Answer 1

Inputs used to produce final goods and services in an economy/firm
Capital
Enterprise/Entrepreneurship
Land
Labour

Question 2

Capital

Answer 2

Equipment used in producing final goods/services e.g. machines, factories. Must be man made

Question 3

Entrepreneurship

Answer 3

Actual person/business who takes initiative to set up a business and employ other Factors of production. Someone who starts a business needs machines (capital), workers (labour) and raw materials like wood (land). Reward=Profit

Question 4

Land

Answer 4

Raw materials available from nature from mining, fishing, agriculture etc. E.g. oil, wood, animals in an area, vegetable and fruit or the land that the factory is built on. These resources are scarce so you must be careful how they are used.

Question 5

Labour

Answer 5

Work done by people who contribute to the production process. Could be part time, full time, permanent or temporary. Reward=Wages

Question 6

Productivity

Answer 6

How much output can be produced with a given set of inputs (e.g. workers) over a time period (e.g. hour)

Question 7

Labour productivity

Answer 7

Output per worker

Question 8

Productivity increases

Answer 8

When more output is produces with the same amount of inputs (e.g. workers) or when the same amount of output is produced with less inputs over the same period of time

Question 9

Productivity decreases

Answer 9

When less output is produced with the same amount of inputs or when the same amount of output is produced with more inputs over the same amount of time

Question 10

Productivity example

Answer 10

If a factory producing 10,00 cars per month reports 2000 hours worth of labour, labour productivity would be 5 cars per hour.