The Production Process Flashcards
Regarding input, what are four factors of production?
1) Labour (the baker receives a wage)
2) Natural resources (the ingredients): the owner of the natural resources receives an income.
3) Capital: money used to buy the oven and mixer.
4) Entrepreneurship: the owner of the bakery who started the business.
In production, what do we mean by “output”?
1) Goods - physical product
2) Services - non-tangible products that are sold by the business, e.g. a haircut.
Look at the notes for the cycle of production drawing.
See notes
Show a flow chart for the production of maize meal, showing the key sectors of the economy.
Primary sector: maize grown on farms is harvested -> secondary sector: it is ground into meal and packed -> tertiary sector: maize meal is sold in shops and cooked at home.
List some activities that take place in the primary sector of the economy.
Farming Fishing Forestry Hunting Gathering Mining
Give some examples of activities that take place in the secondary sector of the economy.
In the secondary sector raw material is manufactured into things people can use; such as car factories, aero plane factories, clothing manufacturers etc.
Explain the tertiary sector and give some examples.
The tertiary sector offers finished goods and services to the public. Schools Hospitals Banks Restaurants Law firms Retail stores ( like woolworths and picknpay) Tourism
Give six examples of renewable resources.
Trees, fish, fertile soil, oranges, paper, water.
Give six examples of non-renewable resources.
Oil, diamonds, coal, rhinos, gold, silver.
What is sustainability?
It is the process of using resources in such a way that we don’t deplete them.
What are three key elements of sustainability?
1) re-use resources: plastic, glass, paper
2) recycle: a process that transforms an item into another kind of usable form.
3) reduce use of the resource: use less of the resource, e.g. Water. Also use other sources, like solar power instead of electricity generated by coal.
Explain what is meant by “economic growth”.
When a country’s economy grows and becomes bigger. In other words, the country has produced more goods and services than it did in the previous year (increase in quantity of goods and services.
List some strategies for stimulating economic growth
1) Promoting entrepreneurship and encouraging new small businesses.
2) encourage existing businesses to expand and increase productivity
3) improve the level of productivity
4) modify production techniques to make them more effective so that output increases.
5) improve business management practices to increase efficiency and productivity.
6) Encourage investors from other countries to invest in local businesses in SA or to start up new ones.
What are the benefits of economic growth in a country?
1) There are more goods and services available for customers to choose from which means there is more variety and more items for them to purchase.
2) employment levels rise and unemployment levels drop - this reduces poverty.
3) the average standard of living improves because more people have jobs and more money is being circulated in the economy.
What does productivity mean?
Productivity refers to how efficiently resources are being used to generate products and services. Increasing productivity refers to the process of improving the use of resources to get more out of them so that more goods and services can be produced.
