unit 1- transforming resources into goods and services Flashcards
1
Q
what is an output?
A
an output is something that occurs as a result of the transformation of business inputs
2
Q
what is added value?
A
the difference in value between the price of the finished product and the cost of materials
3
Q
what is primary production?
A
primary production is the extraction of resources at the first stage of production (involving land and raw materials)
4
Q
what is secondary production?
A
secondary production is the transformation of resources to produce finished goods
5
Q
what is tertiary production?
A
tertiary production is the transformation of resources to provide a service
6
Q
what is an input?
A
an input is something that contributes to the production of a product or service
