Transforming Resources Into Goods And Services

Question 1

Factors of production

Answer 1

The categorisation of the resources used to convert inputs into outputs, into 4 elements- land, labour, capital and enterprise

Question 2

Factors of production

Answer 2

Capital- goods that are made in order to produce other goods
Enterprise- bringing together the other factors of production in order to create goods and services
Land- natural resources used
Labour- physical and mental effort involved

Question 3

Production definition

Answer 3

The process whereby resources (factors of production) are converted into a form that is intended to satisfy the requirements of potential customers

Question 4

Improving the efficiency of the factors of production

Answer 4

Improving fertility of land
Using renewable or recyclable resources
Greater education/training of workforce
Increasing the level of investment 
Improvements in entrepreneurial skills 
Extending overall scale of production

Question 5

Transformation process

Answer 5

Inputs>transformation process>outputs>feedback>inputs

Cycle

Question 6

Main outputs of the transformation process are classified into:

Answer 6

Natural resources
Semi-finished and finished goods
Services

Question 7

Three types of production (outputs)

Answer 7

Primary sector
Secondary (manufacturing) sector
Tertiary sector

Question 8

Value added definition

Answer 8

Sales revenue - cost of bought-in materials, components and services.

Question 9

Adding value definition

Answer 9

The process of increasing the worth of resources by modifying them

Question 10

Resources or inputs definition.

Answer 10

Elements that go into producing goods and services