The factors of production and sectors of the economy

Question 1

what is production

Answer 1

process of turning resources into services or goods

Question 2

what are the factors of production

Answer 2

land labour capital enterprise

Question 3

how does land affect production

Answer 3

businesses need to take in account the type of the land they need, expense of land, and if its renewable or non renewable like coal and oil sites, or just fish farms and rivers, if not well protected polluted they will dissapear

Question 4

what is human capital

Answer 4

the value of the workforce or an individual worker to a business

Question 5

how does capital affect production(2)

Answer 5

capital can be working capital or fixed capital
working - where capital is for materials resources, excess stocks waiting to be sold
fixed - capital that are offices, machines, shops, tools, furniture etc which is fixed bc it will not be converted into a final product

Question 6

how does enterprise affect production (4)

Answer 6

they come up with a business idea
they risk take their money in ventures
they produce an idea or find a gap in the market
they are responsible for employing the 3 other factors of production

Question 7

what are the reasons why manufacturing has decline in developed countries (4)

Answer 7

• people want to spend more of their income on services rather than goods + decline in demand for traditional manufacturing goods like ship building or textiles
• fierce competition from exporters like china
• as countries develop public sector grows, adds to the tertiary sector bc services
• advances in tech, machines < ppl