Transforming Resources Into Goods And Services Flashcards Preview

Planning and Financing A Business > Transforming Resources Into Goods And Services > Flashcards

Flashcards in Transforming Resources Into Goods And Services Deck (10):
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Factors of production

Land, labour, capital and enterprise

1

Land

natural resources that can be used for production (Gold and coal, fish and livestock )

2

Labour

The physical and mental effort involved in production. E.g. All types of jobs

3

Capital

Goods that are made in order to produce other goods and services. E.g. Lorries, factories or computer systems

4

Enterprise

The act of bringing together the other factors of production in order to create goods an services. Carried out and financed by the entrepreneur.

5

3 ways of improving the efficiency of the factors of production

-Improving the fertility of land through fertilisers
-Using renewable/recyclable resources to reduce waste
-Expanding the overall scale of production (bulk-buying)

6

Primary sector

Involves the extraction of raw materials. E.g farming or mining

7

Secondary sector

Organisations in this sector process or refine raw materials into finished/semi-finished goods. E.g. Food processors or vehicle manufacturers

8

Tertiary sector

Organisations in this sector provide services to customers and other business, in either the public or private sector

9

Adding value

The process of increasing the worth of resources by modifying them.