Chapter-2 Flashcards
Factors of production (23 cards)
What are the factors of production?
Factors of production are the economic resources of land labour capital and enterprise.
What is land?
Land is gifts of nature available for production.
What is labour?
Labour is human effort used in producing goods and services.
What are capital goods?
Capital goods are human made goods used in production.
What are consumer goods?
Consumer goods are goods and services purchased by households for their own satisfaction.
What is enterprise?
Enterprise is risk bearing and key decision making in business.
What is occupationally mobile?
Occupationally mobile means capable of changing use.
What is geographically mobile?
Geographically mobile means incapable of moving from location to another location.
What is mobility of labour?
Mobility of labour is the ability of labour to change where it works or in which occupation.
What is mobility of capital?
Mobility of capital is the ability to change where capital is used or in which occupation.
What is the mobility of enterprise?
Mobility if enterprise is the ability to change where enterprise is used or in which occupation.
What are the causes of geographical immobility?
1) Differences in the price and availability of housing in different areas and countries.
2) Family ties
3) Differences in educational systems in different areas and countries.
4) Lack of information
5) Restrictions on the movemnet of workers.
Who is an entrepreneur?
Entrepreneur is a person who bears the risk and makes the key decisions in a business.
How is the number of available workers determined?
1) The size of the population
2) The age structure of the population.
3) The retirement age
4) The school leaving age
5) Attitude to working women
What is output?
Goods and services produced by the factors of production.
What is productivity?
Productivity is the output per factor of production in an hour.
How is the number of hours a worker works influenced?
1) The length of the average working day.
2) Whether they work full time or part time.
3) The duration of overtime
4) The length of the holidays taken by workers.
5) The amount of time lost through sickness and illness.
What is depreciation?
Depreciation is the value of goods that have worn out or become obsolete.
What is the labour force?
Labour force is people in work and those actively seeking work.
What is investment?
Investment is spending on capital goods.
What is gross investment?
Gross investment is total spending on capital goods.
What is net investment?
Net investment is gross investment minus depreciation.
What is negative net investment?
Negative net investment is a reduction in the number of capital goods caused by some obsolete and worn out capital goods not being replaced.
