The Factors Of Production and Sectors Of The Economy Flashcards
(16 cards)
What are the factors of production?
4 factors of production - Land, Labour, Capital, Enterprise
Relationship between factors of production
They’re interdependent on each other
What is included in Land?
Renewable resources (coal, oil, etc.) and Non-renewable resources (water, sunlight, etc.)
What is included in Labour?
Physical labour and Automatic labour
What is included in Capital?
working capital (raw materials), fixed capital (machines)
What is included in Enterprise?
operations of businesses including sole traders
How many sectors are there in an economy of a country?
4 sectors (Primary, Secondary, Tertiary, Quaternary)
What is primary sector?
A sector where raw materials are extracted from the ground (Agriculture, fishing, forestry, mining and quarrying)
What is secondary sector?
A sector where raw materials are manufactured into physical goods
What is quaternary sector?
A sector where research and development are carried out to make a product or gather information about something
What is tertiary sector?
A sector where services are being served to consumers (commercial services, financial services, household services, leisure services, professional services, transport)
What are the ratio/percentage difference between developed and underdeveloped countries about their sectors in economy?
Developed countries - Small amount of primary sector, secondary amount is less than tertiary amount which is the largest
Underdeveloped countries - Large amount of primary sector, secondary amount is less than primary sector and tertiary sector is the smallest
What is a human capital?
value of workforce or an individual worker
Two difference types of production?
Labour-intensive (Produced by human labour), Capital-intensive (Produced by machines)
Advantages of labour-intensive production
easy to fix problems if one of the steps broke down, can do customized orders
Advantages of capital-intensive production
cheaper costs, high efficiency
