1.2 Business Economics : Unit 14 -16 Flashcards
(37 cards)
1
Q
- What is production?
A
- a process that involves converting resources into goods or services.
2
Q
- What do you mean by factors of production?
A
- resources used to produce goods and services, which include land, labor, capital and enterprise.
3
Q
- What are the 4 factors of production?
A
- Land
- Labor
- Capital
- Enterprise
4
Q
- What is human capital?
A
- value of workforce or an individual worker.
5
Q
- What is labour?
A
- people used in production.
6
Q
6, What are the two types of capital?
A
- Working capital/ circulating capital
- Fixed capital
7
Q
- What is capital?
A
Capital is the artificial resource used for production
8
Q
- What is working capital/ circulating capital?
A
they are resources used up in the production such as raw materials and components.
9
Q
- What is fixed capital?
A
- stock of “man-made” resources, such as machines and tools, used to help make goods and services.
10
Q
- Who are entrepreneurs?
A
- individuals who organize the other factors of production and risk their own money in a business venture.
11
Q
- What is land?
A
- a plot of land on which to locate or operate their premises.
12
Q
- What are the two types of production?
A
- capital intensive production
- labour intensive production
13
Q
- What is capital intensive production?
A
-production that relies more heavily on machinery relative to labor.
14
Q
- What is labour-intensive production?
A
- production that relies more heavily on labor relative to machinery.
15
Q
- What is primary sector?
A
production involving extraction of raw materials from the earth.
16
Q
- What are the 4 examples in primary sector?
A
- Agriculture
- Fishing
- Forestry
- Mining and quarrying
17
Q
- What are assembly plants?
A
- factory where parts are put together to make a final product
18
Q
- What is the secondary sector?
A
- production involving the processing of raw materials into finished and semi- finished goods.
19
Q
- What is tertiary sector?
A
- production of services in the economy.
20
Q
- What are the 6 examples in the tertiary sector?
A
- commercial services
- financial services
- household services
- leisure services
- professional services
- transport
21
Q
- What is de-industrialization?
A
- decline in manufacturing.
22
Q
- What are the 4 reasons for de-industrialization?
A
- people prefer to spend their income on services rather than manufactured goods.
- fierce competition in the production of manufactured goods from developing countries.
- Growth of the public sector.
- Advances in technology in manufacturing.
23
Q
- What is productivity?
A
- rate at which goods are produced, and the amount produced in relation to the work, time, and money needed to produce them.
24
Q
- What are the 5 ways to affect the productivity of land?
A
- Fertilisers and pesticides
- drainage
- irrigation
- reclamation
- genetically modified crops
25
26. 4 ways to improve labor quality?
- training
- improved motivation
- improved working practices
- Migration
26
27. What is division of labour?
breaking down of the production process into small parts with each worker allocated to a specific task.
27
28. What is specialization?
- production of a limited range of goods by individuals, firms, regions or countries.
28
29. Name 3 advantages of division of labor to worker.
- worker is more skilled due to repetition.
- more likely to get paid more.
- more job satisfaction.
29
30. Name 3 disadvantages of division of labor to worker.
- work can become boring because it is repetitive.
- health implications for workers.
- too specialized is rick of unemployment
30
31. Name 3 advantages of division of labor to businesses.
- efficiency.
- less mistakes= less wastage as a result of specialization.
- Increased productivity.
31
32. Name 3 disadvantages of the division of labor to businesses.
- too repetitive and boring poor motivation. affects quality.
- Too much interdependence may interrupt production process.
- Loss of flexibility.
32
33. What are costs?
expenses that must be met when setting uo and running a business.
33
34. What is fixed cost?
(overheads) costs that do not vary with the level of output.
34
35. What is a variable cost?
costs that change when out put levels change.
35
36. What do you mean by total cost?
fixed costs and variable costs added together.
36
37. What do you mean by average cost?
Average cost is the cost of producing a single unit of output.
37
38. What is profit?
Profit is the difference between total revenue and total cost.
