types of production Flashcards
1
Q
productive efficiency
A
businesses choose from different production processes. whichever is lower provides productive efficiency
1
Q
3 sectors
A
primary, secondary, tertiary
2
Q
labour-intensive process
A
more labour less capital(physical plant and equipment)
3
Q
capital intensive process
A
more capital less labour(physical plant and equipment)
4
Q
explicit costs
A
payments to resource supplies outside a business. accounting costs.
5
Q
implicit costs
A
what owners give up by being involved in a business(opportunity cost)
6
Q
capital and labour are…
A
capital(fixed), labour(variable)
7
Q
what is marginal product?
A
an input is the additional quantity of output produced by using one more unit of that input.
