Production

Question 1

What is production?

Answer 1

Production is the process of using materials (inputs) and transforming them to produce goods and services (outputs) to satisfy wants and needs.

Question 2

Name examples of inputs and outputs.

Answer 2

INPUT -> OUTPUT
Wool -> clothing
Trees -> pencil/paper
Wood -> Furniture

Question 3

What are the FOUR factors of production?

Answer 3

Land
Labour
Capital
Enterprise/Entrepreneurship

Question 4

What does the term ‘factors of production’ refer to?

Answer 4

The term ‘factors of production’ refers to the resources that are combined in the production process to create goods and services.

Question 5

What are the rewards for each factor of production?

Answer 5

Land - RENT
Labour - WAGES
Capital - INTEREST
Enterprise - PROFIT

Question 6

What is a characteristic for each factor of production?

Answer 6

Land: Land + Natural Resources
Labour: Physical and Mental Work/Effort/Input
Capital: Fixed/Working Capital
Enterprise: Organisation of Factors

Question 7

What is an example for each factor of production?

Answer 7

Land: Farm, Crops
Labour: Workforce
Capital: Machinery
Enterprise: Manager

Question 8

What are some examples of natural resources that land includes?

Answer 8

Soil, Oil, Water, Sunshine, Seas, Rivers, Vegetation, Minerals etc.

Question 9

What is a renewable resource?

Answer 9

A renewable resource is naturally replenished and cannot be used up.

Question 10

What is a non-renewable resource?

Answer 10

A non-renewable resource is an environmental resource that can be used up and not replenished once the resource runs out.

Question 11

What is a natural resource of Trinidad?

Answer 11

Crude oil

Question 12

What country is bauxite found in?

Answer 12

Jamaica, Guyana

Question 13

Where is clay found?

Answer 13

Throughout the Caribbean

Question 14

Where are diamonds found?

Answer 14

Guyana

Question 15

Where is gold found?

Answer 15

Guyana, Suriname

Question 16

Where is limestone found?

Answer 16

Jamaica, Barbados, T&T

Question 17

Where is manganese found?

Answer 17

Guyana

Question 18

Where is natural gas found?

Answer 18

Barbados, T&T

Question 19

Where is crude oil found?

Answer 19

T&T

Question 20

Where is sand and silica found?

Answer 20

Throughout the Caribbean

Question 21

Where is asphalt found?

Answer 21

T&T

Question 22

Where are forests found?

Answer 22

Throughout the Caribbean

Question 23

Where is raw iron found?

Answer 23

T&T

Question 24

Where is natural coal found?

Answer 24

T&T

Question 25

What is Labour?

Answer 25

Labour is physical and mental effort.

Question 26

What are some rewards for labour?

Answer 26

Some rewards are: Profit, Interest, Wages and Salaries

Question 27

What are the FOUR categories of labour?

Answer 27

1. Unskilled (little or no training) 2. Semi-skilled (more experience than education) 3. Skilled (hard level of training) 4. Professional (university level, professional qualifications)

Question 28

Give two examples of each category of labour.

Answer 28

1. Unskilled: janitors, fast food workers 2. Semi-skilled: security guard, waitress 3. Skilled: police, mechanic 4. Professional: doctors, lawyers

Question 29

What is capital?

Answer 29

Capital is any man-made resource used by a business in the production of goods and services.

Question 30

What are the three types of capital?

Answer 30

1. Fixed 2. Working 3. Venture

Question 31

What is fixed capital?

Answer 31

Fixed capital is an asset or man-made resource that doesn't get consumed for production.

Question 32

What are two examples of fixed capital?

Answer 32

Buildings, Machinery

Question 33

What is working capital?

Answer 33

Working capital is any asset or man-made resource that is consumed during the production process.

Question 34

What are two examples of working capital?

Answer 34

Stocks of materials, Goods and cash needed for the day-to-day running of the business

Question 35

What is venture capital?

Answer 35

Venture capital is a form of financing that provides funds for early stage, emerging, innovative companies with high growth potential, in exchange for equity (value of the shares issued by a company).

Question 36

What are venture capitalists?

Answer 36

Venture capitalists are wealthy investors who like to invest their capital into businesses with long-term growth perspective.

Question 37

What is an entrepreneur?

Answer 37

An entrepreneur is someone who is the owner and risk-taker in a business venture and is responsible for combining and organizing all the other factors of production to produce a saleable product that will hopefully allow the business to make a profit.