Section 5

Question 1

What is production

Answer 1

Production is the process or methods changing(transforming) resources(inputs) and creating a good or service that has value(output) for consumption

Question 2

Factors of production

Answer 2

Land, labour, enterprise, capital

Question 3

Land

Answer 3

All things supplied by nature and used in the production of goods and services, referred to as the gift of nature in includes all that is found in,on and below.

Question 4

Labour

Answer 4

The human power with all of their efforts abilities and skills, required for any production process is called labour.

Question 5

Classifications of labour

Answer 5

Unskilled, semi skilled, skilled, managerial professional

Question 6

Unskilled

Answer 6

Jobs that involve very little or no formal training. No specific skills and hardly any education and a Relatively easy job. E.g cleaners, garbage collectors, grocery packers.

Question 7

Semi skilled

Answer 7

Jobs that require some formal training, or partial skills. High school graduates but not formal college education. E.g waiter, guard flight attendance, bar tender.

Question 8

Skilled

Answer 8

advanced training, higher education.These jobs require knowledge of specific skills learned from school,workshops and experience. E.g nurse, electrician, plumbers.

Question 9

Managerial professional

Answer 9

Jobs that usually require a high level of educational qualifications, often with professional qualifications. E.g teachers,doctors, lawyers.

Question 10

Capital

Answer 10

Capital is referred to as resources used by a business used in the production of goods and services.

Question 11

Fixed capital

Answer 11

The assets owned by a business and kept for a long period of time and is used over and over in the manufacture of goods and services.e.g buildings, machinery, equipment.

Question 12

Working capital

Answer 12

Money used to buy stocks of materials, goods and additional cash needed for the day to day running of the business. It can be used only one and cannot by used again. E.g money

Question 13

Enterprise

Answer 13

Enterprise is when the entrepreneur(manager,owner) combines all of the other factors of production, to form a business with the aim of producing goods and services for consumption in order to earn profit.

Question 14

Production level

Answer 14

The value or volume of goods or services produced by a business

Question 15

Productivity

Answer 15

The level of production per unit of input. It is the measure of efficiency per person, machine, factory etc in converting inputs to outputs.

Question 16

How does productivity benefit the business

Answer 16

1.reduces the cost of each unit made. This helps to make the business competitive
2.it should lead to increased sales and profits, as now the costs of the firm has decreased.
3.with increased productivity it allows the products to be more competitive in the foreign markets,which will increase the exports of the country.

Question 17

Factors that influence productivity levels

Answer 17

1. training and skill level workers-if workers are trained, they become better at their jobs, these workers tend to work faster and more efficiently.
2. the quality and amount of capital equipment-when the business invests more capital into the business, such as the purchase of more machinery and equipment to help workers,this directly increased production.
3. motivation- when workers are motivated, they work harder, they come to work on time,avoid absenteeism and generally are happier people at work.