What is production? Flashcards

1
Q

What is production?

A

is the process of taking raw materials and transforming them into useful goods and services.

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2
Q

What are the raw materials used in the production process known as?

A
  • Resources

- Factors of production

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3
Q

What are the three stages in the production process?

A
  • the primary stage,
  • the secondary stage
  • the tertiary stage.
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4
Q

Explain the primary stage of the production process

A

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.
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5
Q

Explain the secondary stage of the production process

A

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.
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6
Q

Explain the tertiary stage of the production process

A

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.
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7
Q

What are the inputs to the production process

A

raw materials or resources

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8
Q

What are the outputs to the production process

A

goods and services

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9
Q

What are inputs also known as?

A

factors of production

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10
Q

What are the four groups of factors of production (inputs)?

A
  • natural resources (land)
  • labour
  • capital
  • entrepreneurs.
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11
Q

What are natural resources? give examples

A
  • 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.
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12
Q

What is labour? give examples

A
  • 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.
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13
Q

What is capital? give examples

A

-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.

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14
Q

What are entrepreneurs? give examples

A
  • 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.
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15
Q

What are outputs?

A

-refer to the products that the business produces.

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16
Q

Name the two types of outputs

A
  • 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.
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17
Q

What is a renewable resource?

A
  • is a natural resource
  • with the ability to replace itself through some biological or natural process.
  • can be replenished in time
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18
Q

Give examples of renewable resources

A
  • water
  • oxygen
  • timber
  • fruit and vegetables
  • meat from animals.
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19
Q

Which renewable resources are there an endless supply of?

A
  • solar energy
  • wind energy
  • geothermal pressure
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20
Q

Which renewable resources need some time or effort to regenerate themselves?

A
  • wood
  • oxygen
  • leather
  • fish
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21
Q

Are precious metals a renewable resource?

A
  • Most precious metals are also considered renewable even though they are not naturally replaced.
  • They can, however, be recycled because they are not destroyed during their extraction and use.
22
Q

What is a non-renewable resource?

A

-is a natural resource that cannot be replaced.

23
Q

Give examples of non-renewable resources?

A
  • fossil fuels like coal, oil and gas

- minerals like copper.

24
Q

What does it mean if we say a non-renewable natural resource has been depleted?

A

it means that there is no more available for future needs.

25
Q

What does Sustainability mean?

A
26
Q

What does Sustainable use of resources mean?

A

our rate of using the resource can continue forever without damaging the environment

27
Q

Name some strategies we can implement to ensure that we make sustainable use of resources

A

the 3 R’s

  • Reuse resources
  • Reduce use of resources
  • Recycle
28
Q

Explain how we can Reuse resources?

A
  • Instead of throwing something away as waste you can try to find another way to use it.
  • For example, reuse plastic containers instead of throwing them away.
29
Q

Explain how we can Reduce use of resources?

A
  • One way to make resources last is to use them less often.
  • For example, it is sometimes possible to use less water when we are cleaning something. By saving water we reduce our usage and make the supply of water last longer. -Sometimes, it is possible to reduce our use of a scarce or non-renewable resource by replacing it with a resource that is more abundant or renewable.
  • An example is when we use wind power or solar power instead of electricity generated by coal.
30
Q

Explain how we can Recycle resources?

A
  • Recycling refers to the process of putting some waste product (like waste paper and plastic) through a process that transforms it into another kind of reusable form.
  • Water is an example of a resource that can be recycled.
31
Q

What is economic growth?

A
  • When a country’s economy grows and becomes bigger

- an increase in the level of economic output over time

32
Q

What does it mean if you say a country has shown economic growth?

A
  • we mean that the country’s economy has become bigger.

- the country has produced more goods and services than it did in the previous year

33
Q

By what percentage does South Africa’s economy grow every year?

A

3%

34
Q

What does it mean if we say South Africa’s economy grows at an average rate of approximately 3% per year

A

This means that the value of goods and services produced increases by 3% from one year to the next.

35
Q

What strategies can be used to stimulate economic growth in South Africa?

A
  • Promoting entrepreneurship and encouraging new small businesses.
  • Encouraging existing businesses to expand and increase their production.
  • Improving the level of productivity to produce more goods and services.
  • Modifying production techniques to make them more effective so that output increases.
  • Ensuring better management of resources so that we gain maximum use from them.
  • Improving business management practices so that companies become more efficient and productive.
  • Encouraging investors from other countries to invest money in local businesses or to start businesses in South Africa.
36
Q

What are the results of economic growth?

A
  • There are more goods and services for consumers to choose from which means there is more variety and more items for them to purchase.
  • Employment levels rise and unemployment levels drop. This reduces poverty.
  • The level of income increases because people profit from the sale of more goods.
  • The average standard of living improves because more people have jobs and more money is being circulated in the economy.
37
Q

What does Productivity mean?

A

refers to how efficiently resources are being used to generate products and services

38
Q

What does increasing productivity mean?

A
  • process of improving the use of resources
  • to get more out of them so that more goods and services can be produced
  • to increase profits
39
Q

What are some strategies that can be used to improve productivity

A

-Improving the motivation and morale of workers.
-Involving employees in decision-making about the production process.
-Making more economical use of all resources (recycling, reusing and reducing).
-Improving the level of skill and expertise of all workers so that they can do their jobs more efficiently.
-Improving the method of production (by using newer technology or rearranging the production process to make it more efficient).
-Using incentives to reward employees who make significant contributions to the business.
Making use of leadership and management skills to monitor and control the actions of employees.

40
Q

What are the results of improving productivity?

A
  • more goods and services are produced
  • entrepreneurs make more profits
  • this will contribute to increase in economic growth in the country
41
Q

Name factors that can have a negative effect on the productivity of labour?

A
  • ill health
  • lack of education and training
  • poor motivation
  • absenteeism
  • strikes and industrial action.
42
Q

How does the government try and increase labour productivity?

A
  • ensuring that workers are well educated and well trained
  • taking steps to improve the health status of workers
  • taking steps to ensure that workers are well motivated
  • making laws which compel employees to go to work except when they are sick.
43
Q

How does the government try and increase the productivity of natural resources (land)

A
  • educating people about the sustainable use of resources
  • passing laws which prevent the exploitation of natural resources
  • encouraging people to use natural resources responsibly.
44
Q

What is technology

A

any machinery, equipment or tools developed with scientific knowledge

45
Q

Give examples of technology

A
  • computers,
  • smart phones,
  • electronic gadgets
  • machinery
46
Q

What are advantages of using technology in the production process?

A
  • machinery can be designed to do the work of people more efficiently and more effectively
  • improves the productivity of the other factors of production
47
Q

What are disadvantages of using technology in the production process?

A
  • Costly to purchase.
  • Loss of jobs.
  • Expensive to maintain.
48
Q

How does technology contribute to improving productivity and economic growth?

A
  • it enables humans to do things faster and better

- it improves efficiency and effectiveness.

49
Q

Advantages of using technology to improving productivity and economic growth

A
  • lead to an increase in productivity, which leads to more goods and services
  • increase in output which gives rise to economic growth
50
Q

Disadvantages of using technology to improving productivity and economic growth

A
  • lead to increased levels of unemployment when people are replaced by machines
  • can to be distracted from their work or when they have to learn new systems and new production processes