YR 9 EXAM REVISION ON TERMS Flashcards
(40 cards)
what is production?
Production is the making of goods and offering of services in order to satisfy human wants and needs.
what are the factors of production?
Land
Labour
Capital
Enterprise
what is land and what the reward is?
This is also called a natural resource used in production.
Includes what is beneath the earth (land), what grows naturally on it, what is found in it, the sea, atmosphere, mountains, valleys, fish, plants etc.
The reward is rent.
what is labour and what are the three types and the reward?
Human resources used in production. There are three types:
Skilled – Highly trained workers.
Semi-skilled – Workers with little training such as stewards etc.
Unskilled – Workers who do not need training.
The rewards are wages/salaries.
what is capital and what is the reward?
Human-made items used in production of goods and services.
Examples include buildings, office desks, machineries and motor vehicles.
The reward is interest.
who is an entrepreneur and what are their reward?
He/She is the provider of capital.
He/She is the risk bearer.
He/She brings together the three other factors of production.
His/Her reward is profit/loss.
what is a scale of preference?
the list of wants or needs that a person writes or comes up with in order of their importance.
what is scarcity?
Scarcity means “limited in supply”.
The resources we have are not enough to satisfy all our unlimited wants and
needs.
what is opportunity cost?
It is measured in terms of the next best alternative given up when making a decision. Every choice made has an opportunity cost.
what are the types of production?
TYPES/STAGES OF PRODUCTION
Primary
Secondary
Tertiary
primary production?
Firms that extract food and raw materials from the earth e.g. farming, fishing, mining, quarrying, horticulture etc.
secondary production?
Firms that:
Manufacture – changing raw materials to finished or consumable items.
Construct buildings, roads and bridges.
tertiary production?
Provision of services to The general public and other firms e.g. retail shops, doctors, dentists, schools, hairdressers, advertising agencies, lawyers, financial advisers, insurance companies and banks.
what are other names that production possibility curve is also known as.
Production Possibility Curve is also known as:
Production Possibility Boundary;
Production Possibility Frontier; or
Product Transformation Curve.
Production Possibility Curve – Meaning
what is division of labor?
This when production process is broken down a number of tasks, with each task performed by a separate person or group of persons.
advantages of division of labor to workers?
Advantages for Workers:
Become skilled: workers can get skilled and experienced in a specific task which will help their future job prospects
Better future job prospects: because of the skill and training they acquire, workers will, in the future, be able to get better jobs
Giving each employee tasks that best suit her skills
disadvantages of division of labor to workers?
Disadvantages to workers
Boredom: Performing the same task over and over again may lead to boredom for the workers.
Reduced flexibility (specialist teachers
)
Lack of mobility: Due to specialisation workers might find it difficult to switch between occupations.
advantages to firms from division of labor?
Advantages to firms
Increased productivity: when people specialise in particular tasks, the total output will increase.
Increased quality of products: because workers work on tasks they are best suited for, the quality of the final output will be high.
Low costs: workers only need to be trained in the tasks they specialise in and not the entire process;
Faster: when everyone focuses on a particular task and there is no need for workers to shift from one task to another, the production will speed up
Increased profits: lower costs and increased productivity will help boost profits.
Disadvantages to firms from division of labor?
Disadvantages o firms
Increased dependency: The production may come to a halt if one or more workers doing a specific task is absent.
Quality may suffer if workers become bored by the lack of variety in their jobs
Advantages to the economy from division of labor?
Advantages to the economy
Better utilisation of human resources in the economy as workers do the job they’re best at, helping the economy achieve its maximum output.
Inventions arise: as workers become skilled in particular areas, they can innovate and invent new methods and products in that field.
disadvantages to the economy from division of labor?
Disadvantages to the economy
Labour immobility: occupational immobility may arise because workers can only specialise in a specific field.
Reduces the creative instinct of the labour force in the long-run as they are only able to do a single task repetitively and the previous skills they acquired die out.
What is Added Value?
It is the difference between what a business pays its suppliers, and the price that it is able to charge for the product/service.
Businesses can add value to their product/service by doing something with the raw materials and providing something ‘different’.
SOURCES OF ADDED VALUE?
SOURCES OF ADDED VALUE Quality Design Unique selling point Speed of service Branding Convenience
IMPORTANCE OF ADDED VALUE?
Every business must add value to survive and be
successful
The higher the added value, the more likely it is that a
business will survive, grow and be successful in the long
term
Benefits to a business of adding value: A business
can differentiate itself from its competitors
A business can save the cost on advertising and other
promotional activities once it has created a perception of
high quality and brand loyalty among its customers.
