Transforming Goods and Service Flashcards
Definition of resources:
the elements that go into producing goods and services
Definition of factors of production:
the four elements: land, labour, capital and enterprise; used in the production of goods and services
How do you improve the efficiency of the factors of production? (give 3)
- Using renewable or recyclable resources
- Improving the fertility of the land
- Improvements in entrepreneurial skills
Definition of Production:
where resources are converted into a form that is intended to satisfy the requirements of potential customers
Definition of Output:
the finished products resulting from the transformation process
Different types of main outputs: (3)
- Natural resources
- Semi-finished and finished goods
- Services
Def. of Primary Sector:
those organisations involved in extracting raw materials
Def. of Secondary Sector:
those organisations involved in processing or refining the raw materials from the primary sector into finished or semi-finished products
Def. of Tertiary Sector
those organisations involved in providing services to customers and to other businesses, in either the public or the private sector
Def. of Adding Value:
the process of increasing the worth of resources by modifying them
Def. of Value Added:
sales revenue - the cost of bought in materials, components and services. `
Def. of Unique Selling Point/Proposition:
a feature of a product or service that allows it to be different from other products.
