Production - Types & Levels Flashcards
(9 cards)
What are the 3 types of production and their main purpose?
- Primary - Extraction of natural resources
- Secondary - Manufacturing extracted materials and construction
- Tertiary - Selling and distributing the product
What is an industry?
An industry consists of businesses that use similar methods and specialize in the production and distribution of similar products.
What is the primary sector?
The extraction of natural resources (raw materials) which will later be used to produce finished goods.
What is the secondary sector?
Finished and semi-finished goods are produced from the extracted natural resources.
Manufacturing these goods includes:
- refining and processing natural materials
- the production of parts and components
- assembly into finished consumer and capital goods
What is the tertiary sector?
Distribution and selling of goods and services to customers.
What is a labour supply?
The amount of people available for work.
What does a low birth rate result in?
A low labour force in the next 18 years.
What are the 4 levels of production?
- Subsistence
- Domestic
- Surplus
- Export
What is the subsistence level?
This is the lowest level of production
