Production(Chapter 5) Flashcards
What is Productivity ?
Is the amount you can make per unit
What are the types of production?
Primary
Secondary
Tertiary
What are the Factor of production?
Land reward is Rent
Labour reward is wage
Capital reward is interest
Entrepreneurship reward is profit
What are the four levels of production?
Subsistence Production
Domestic production
Surplus Production
Export Production
What is Subsistence production?
Is the production of goods to satisfy one’s own personal needs (Direct production)
What is the Domestic Production?
Is the production of good/services for the local market (within their own country)
What is Surplus Production?
Is the production of good and service both the local market (within their own country) and foreign/international market
What is Export Production?
Is a production of good and service entirely for the export/international market
What is the Production level of business?
The value or volume of good or service produced by a business
What is Productivity Formula?
Output÷Input
What is a Cottage industry?
An industry where the creation of products and services is home/community based rather than factory based
What are the features of a Cottage industry?
~Home based
~Mainly manual(do not use a lot of technology)
~Small scale operations
~Use local raw materials
~Use family members as labour
An example of Subsistence production is
Kitchen garden, provide nursery and childcare
Examples of Domestic Production
Local bakeries, Supermarket, Local food production, newspapers
Example of Surplus production
International banking, education services
