Business Economics

Question 1

Production

Answer 1

Process that includes converting resources in goods or services

Question 2

Factors of production (CELL)

Answer 2

Resources used to produce goods and services which include land, labor, enterprise and capital

Question 3

Human capital

Answer 3

Value of the workforce or an individual worker

Question 4

Labour

Answer 4

People used in production

Question 5

Entrepreneur

Answer 5

Individual who organizes the other factors of production and risk their own money

Question 6

Capital intensive

Answer 6

Production that relies more heavily on machinery relative to labour

Question 7

Labour intensive

Answer 7

Production that relies more heavily on labour relative to machiney

Question 8

Primary sector

Answer 8

Production involving the extraction of raw materials from the earth

Question 9

Primary sector involves..

Answer 9

Agriculture, fishing, forestry, mining and quarrying

Question 10

Secondary sector

Answer 10

Production involving the processing of raw materials into finished and semi-finished goods

Question 11

Examples of secondary sector are…

Answer 11

Manufacturing, processing, construction, metal working, textile production

Question 12

Assembly parts

Answer 12

Factories where parts are put together to make a final product

Question 13

Tertiary sector

Answer 13

Production of services in an economy

Question 14

Examples of tertiary sector sercives

Answer 14

• Commercial services (freight delivery, dept collection)
• Financial services (banking, insurance, investment advice)
• Household services (plumbing decorating, gardening)
• Leisure services (television, tourism, hotels)
• Professional services (medical care, accounting)
• Transport (train, taxi, bus)

Question 15

De-industrialisation

Answer 15

Decline in manufacturing

Question 16

Why manufacturing declined while services grew in developed countries?

Answer 16

• People may prefer to spend income on services rather than goods
• Fierce competition in the production of goods from developing countries (China, Brazil, India)
• As a country develops, the public sector grows; it mainly provides services, which adds growth to the tertiary sector
• Advances in tech means that employment in manufacturing falls