What is production? Flashcards
What is production?
is the process of taking raw materials and transforming them into useful goods and services.
What are the raw materials used in the production process known as?
- Resources
- Factors of production
What are the three stages in the production process?
- the primary stage,
- the secondary stage
- the tertiary stage.
Explain the primary stage of the production process
The primary stage of production
- natural resources are taken from the earth.
- primary sector are businesses that are involved in the first stage of production.
- These businesses are sometimes called extractive industries because they often extract things, such as crops or metals, from the ground.
- The primary sector includes mining, fishing, forestry and farming.
Explain the secondary stage of the production process
The secondary stage of production
- products are manufactured from the natural resources extracted in the primary stage. -Businesses in the secondary sector of the economy process the primary sector products and turn the natural resources into finished goods.
- Examples are flour mills, factories, sawmills and car manufacturing plants.
Explain the tertiary stage of the production process
The tertiary stage of production
- is done by businesses that provide services rather than make goods.
- Some tertiary sector businesses buy goods from manufacturers and transport or resell the goods to customers. In other words, they offer services to manufacturers and customers.
- Other businesses in this sector offer services to individual people, such as healthcare, banking or transport.
- Examples of businesses in the tertiary sector include shops, transport companies, doctors and banks.
What are the inputs to the production process
raw materials or resources
What are the outputs to the production process
goods and services
What are inputs also known as?
factors of production
What are the four groups of factors of production (inputs)?
- natural resources (land)
- labour
- capital
- entrepreneurs.
What are natural resources? give examples
- are the things provided by nature that people use to produce goods and services.
- Examples of natural resources are land, air, water, minerals, animals, plants and wind.
What is labour? give examples
- Labour describes the people involved in the production process.
- Labour refers to the physical and mental effort that people provide to produce goods and services. The human part of any production process is classified as labour.
What is capital? give examples
-Capital is the term used to describe all the man-made objects that are used in the production process. -Examples include buildings, machinery, equipment, furniture, vehicles and computers. Money is also considered to be a capital item. Any natural resources that have been processed are also considered to be capital.
What are entrepreneurs? give examples
- Entrepreneurs are the people who start businesses.
- They are individuals who identify business opportunities, plan the production process and then produce the goods or services needed. -Entrepreneurs combine the other three factors of production to provide useful goods and services. -Entrepreneurs identify business opportunities and make them work.
What are outputs?
-refer to the products that the business produces.
Name the two types of outputs
- Goods: Goods are all the physical products that are made and sold by a business. We say that goods are tangible because they can be touched and owned.
- For example, a can of cooldrink is a good.
- Services: Services are all the non-tangible products that are produced and sold by businesses.
- For example, a haircut is a service.
What is a renewable resource?
- is a natural resource
- with the ability to replace itself through some biological or natural process.
- can be replenished in time
Give examples of renewable resources
- water
- oxygen
- timber
- fruit and vegetables
- meat from animals.
Which renewable resources are there an endless supply of?
- solar energy
- wind energy
- geothermal pressure
Which renewable resources need some time or effort to regenerate themselves?
- wood
- oxygen
- leather
- fish