Stages of production Flashcards
name the three stages of production
Primary
Secondary
Tertiary
What happens during the Primary stage of production?
Natural resources are taken from the earth. The Primary Sector is made up of businesses that are in involved in the first stage of production. These businesses are sometimes called extractive industries because they often extract things, such as crops or metals, from the ground. Includes mining, fishing, forestry and farming.
What happens during the Secondary stage of production?
Products are manufactured from the natural resources extracted in the Primary stage. Businesses in the Secondary Sector of the economy process the primary sector products and turn the natural resources into finished goods. E.g, flour mills, factories, sawmills and car manufacturing plants.
What happens during the Tertiary stage of production?
Done by businesses that provide services rather than make goods. Some Tertiary Sector businesses buy goods from manufacturers and transport or resell the goods to customers. They offer services to manufacturers and customers. Other businesses in this sector offer services to individual people, such as healthcare, banking or transport. E.g, doctors, banks, transport companies, shops.
Fill in the blanks.
Inputs, also known as the ________ ___ ___________, are the resources used in the production process to make goods and services.
factors of production
What are inputs?
They are the resources used in the production process to make goods and services. AKA factors of production.
Name the four groups of FoP.
~natural resources (land)
~labour
~capital
~entrepreneurs
(NELC)
What are natural resources?
The resources provided by nature that are used in the production process.
What is labour?
The physical and mental effort that people provide to produce goods and services.
What is capital?
The man-made objects that are used in the production process.
What is an entrepreneur?
An individual who start, owns, and manages businesses.
What are goods?
Goods are all the physical products that are made and sold by a business. We say that goods are tangible and can be touched and owned. E.g, a can of cool drink.
What are services?
Services are all the non-tangible products that are produced and sold by businesses. E.g, a haircut.
