Transforming Resources Into Goods And Services

Question 0

Land

Answer 0

natural resources that can be used for production (Gold and coal, fish and livestock )

Question 1

Factors of production

Answer 1

Land, labour, capital and enterprise

Question 2

Labour

Answer 2

The physical and mental effort involved in production. E.g. All types of jobs

Question 3

Capital

Answer 3

Goods that are made in order to produce other goods and services. E.g. Lorries, factories or computer systems

Question 4

Enterprise

Answer 4

The act of bringing together the other factors of production in order to create goods an services. Carried out and financed by the entrepreneur.

Question 5

3 ways of improving the efficiency of the factors of production

Answer 5

• Improving the fertility of land through fertilisers
• Using renewable/recyclable resources to reduce waste
• Expanding the overall scale of production (bulk-buying)

Question 6

Primary sector

Answer 6

Involves the extraction of raw materials. E.g farming or mining

Question 7

Secondary sector

Answer 7

Organisations in this sector process or refine raw materials into finished/semi-finished goods. E.g. Food processors or vehicle manufacturers

Question 8

Tertiary sector

Answer 8

Organisations in this sector provide services to customers and other business, in either the public or private sector

Question 9

Adding value

Answer 9

The process of increasing the worth of resources by modifying them.