The economy, pg. 160 - 169

Question 1

What is production?

Answer 1

Production is the process of changing raw materials into goods and services.

Question 2

What are the 4 factors of production?

Answer 2

1. Natural resources
2. Labour
3. Capital
4. Entrepreneurship

Question 3

What are natural resources?

Answer 3

Natural resources are anything that comes from nature.

Question 4

What is labour?

Answer 4

Labour is physical or mental work done by human beings.

Question 5

What is capital?

Answer 5

Capital is money or goods that is used to generate income or make other products.

Question 6

What is entrepreneurship?

Answer 6

Entrepreneurship is skills to start a new business or to add an idea to an existing one.

Question 7

What are the 3 steps that the process of production is divided into?

Answer 7

1. Inputs
2. Transformation (change)
3. Outputs

Question 8

What is “Inputs” in the production process?

Answer 8

Inputs are all the raw materials, money, capital goods and labour needed to make the final product.

Question 9

What is “Transformation (change)” in the production process?

Answer 9

Transformation (change) is all inputs combined in a factory and used to change raw materials into the final product.

Question 10

What is “Outputs” in the production process?

Answer 10

Outputs are the finished products that will now be sold to the consumer.

Question 11

Give 5 different things that can be used as inputs in the production process.

Answer 11

1. Materials: raw materials or natural resources
2. Manufactured items
3. Mental and physical labour (human resources)
4. Money (capital)
5. Information

Question 12

What is sustainability?

Answer 12

Sustainability is the ability to carry on or exist in a long-term future.

Question 13

What is depletion?

Answer 13

Depletion is to reduce or use up something.