Section 5 Flashcards
What is production
Production is described as the creation or manufacturing of good and services which satisfy human wants and needs. Production occurs when inputs are changed to outputs
What is productivity
Productivity can be described as how well a business uses its resources and can also correlate to a business’ efficiency.
What are the factors of production
Land
Labour
Capital
Enterprise
What is Land
Land can be described as resources found on, above or below the earth’s surface. Land becomes a factor of production when it is used to produce goods. The payment of Land is rent
What is Labour
Labour can be descibed as the human effort of any kind and an individual is involved in labour when they are employed in the production process. The payment of labour is salaries/wages
Define:
Skilled
Semi-Skilled
Unskilled
Skilled-Has training or ability in a particular field
Semi-skilled-Has limited training or ability in a particular field
Unskilled-Has no training and little to no ability
Whata are some factors affecting labour supply
Migration
Cultural Beliefs
Quality of Labour Force
Structure of Population
Economic Conditions
Mobility of Labour
Educational Policy
What is migration
Migration is the change of one’s home or place of abode
What are the two types of migration
Immigration- Foreigners arriving to live in a new country
Emmigration - Individuals leaving one’s country to live in another
What are some positive effects of migration
Labour shortages can be eased
Allows for use of unused resources
Immigrants tend to be young and willing to work
Brings in knowledge, capital and experience
More skills added
What are some negative effects of migration
Overpopulation
Countries which immigrants leave from experience labour shortages
More labour may force to reduce wages because of over supply
Immigrants may be unemployable and puts pressure on the economy
What can determine level of productivity
Level of education
Working conditions
Motivation levels
Health of work force
The amount and quality of capital
Attitude to work
What is capital
Capital is all money and other assets used in the production process
What is local/domestic production level
Local/Domestic production level uses local inputs(land,labour,capital,enterprise). It allows the country to use its own resources rather than importing from other countries
What is subsistence/traditional production level
Subsistence/traditional production level is where production is done for basic needs for survival, nothing more and nothing less.
What is surplus/export production level
Surplus/export production level is production done greater than the domestic needs of a country. This is mainly used by larger countries to earn more foreign exhange as well as to build better relationships with other countries.
What is primary/extractive production
Primary production is the first stage of production and involves extraction of natural resources for example mining,agriculture etc.
What is contruction production
Construction production refers to the creation of physical structures eg. buildings,roads,bridges.
What is manufacturing production
Manufacturing production refers to the creaiton and assembly of components and finished products for sale
What is tertiary/services production
Tertiary production is the final stage of production and is viewed as the link between the manufacturer and the consumer
Define cottage industries
Cottage industries are small businesses or firms that produces goods or services with the use of simple technology. It is usually carried out at home
What are linkage industries
Linkage industries are industries which link firms from different industries together. Therefore, the output of one firm is the input of another firm
What are some features of cottage industries
Usually based at home
Labour intensive
Small capital is needed
Use of family members as labour
Usually sole trader,partnership or small family businesses
Use of simple tools and equipment
Profits put back into the business
What are some characteristics of a small firm
Small capital
Uses small land
1-10 Persons employed
Small sales turnover
Simple Technology
What are some advantages of a small firm
Provides employment
Increased competition for larger firms
Introduction of new products and ideas
Small firms are easy to start up
What are some disadvantages of a small firm
Small firms easily affected by economic changes
Lack of resources at times
Lack of expertise and specialization in certain areas
Owners can find difficulty to gain financing
How does a firm grow internally
Opening more outlets
Increasing capital
Employing more workers
How does a firm grow externally
Mergers
Takeovers/aquisations
Join Ventures
What are some advantages of linkage industries
Multi sector growth for the country
Encourages large scale production
Earns foreign exchange
Promotes innovation
What are some industries developed from natural resources of the caribbean
Electricity
Mining
Roads Building
Lumber
Petroleum Products
What is the role of capital in production
The role of capital in production is that capital is used to produce other goods and to complete production that would not have been done by labour in a timely manner
What are the different types of capital
Venture Capital
Working Capital
Fixed Capital
What are the different types of production
Extractive(Agriculture,Mining,Fishing)
Construction(Building)
Manufacturing(Refining and Assembling)
Service(Transportation,Tourism,Communication)
What are the different levels of production
Subsistence
Domestic
Surplus
Export
What are some functions of small firms
Create Employment
Provides services large firms not willing to produce
To cater to niche markets
To assist in redistribution of wealth
