Section 2 - learning objectives 1-3

Pregunta	Respuesta
production	the conversion of input into output
Productivity	the rate at which input is converted into output
Labour productivity	No. of units produced / No. of labour hours
Production vs productivity	Production is the process of manufacturing a product and focuses on volume of output, whereas productivity measures the rate manufacturing and focuses on the efficiency
Efficiency	getting the most output from the limited resources while minimising waste
factors of production	These are the economic resources which are used to enable the processes of production to occur. The main types are land, labour, capital and entrepreneurship.
the rewards for the factors of production	land - rent labour - wages or salary capital - interest enterprise - profit
'labour'	Labour is any human work which is performed with a view to earn income
improving labour productivity	- use technology - training to improve efficiency - provide financial incentives - Improve working conditions
labour supply	the number of workers willing and able to work at a particular wage.
Factors affecting labour supply	• The size of the population • Wages and salaries earned • Net migration of labour - School leaving age
division of labour	Dividing the production process into different stages enables workers to focus on specific tasks.
advantages of division of labour	i. Higher productivity ii. Lower costs iii. Workers become specialists
disadvantages of division of labour	i. Monotony ii. Creativity is stifled iii. Increased Dependence
specialisation	Concentration on providing particular types of goods and services, and relying on others to provide what one does not produce.
land	All the naturally occurring free gifts of nature from which minerals, agricultural products, water resources etc are obtained.
economic characteristics of land	i. Fixed in Supply. ii. Land is Immovable iii. Land differs in Fertility
Land uses in Caribbean countries	Jamaica and Guyana - bauxite. Guyana - gold mines. Trinidad - oil and gas production. Most Caribbean countries - sun, sand & sea
the importance of land	Land is the original sources of all material wealth. The economic prosperity of a country is closely linked with the richness of its natural resources.
land productivity	The volume of output obtained from the land resources. eg 'how much kilogrammes of tomatoes is obtained from an acre of farm land'
factors affecting land productivity	- Natural factors: The factors like soil, climate, rainfall, topography. - Human factor - man's effort to maximise the use of land
capital	Capital refers to man-made goods that must be available first in order to produce other goods and services. Eg machinery, factories, rods, etc
Characteristics of Capital	i. Capital is man-made. ii. Capital supply is Variable iii. Capital is mobile iv. Capital Depreciates
Types of capital	i. Fixed capital: ii. Working capital: . iv. Human capital
capital accumulation (formation)	Capital formation involves investment spending into capital goods used for producing goods and providing services.
capital intensive	Firms using more machinery than labour in the production process
capital substituting labour - PROS	Increases output Improves Productivity Makes firms more competitive
capital substituting labour - CONS	can lead to unemployment very costly to implement
Entrepreneurship or enterprise	the human effort which brings together the factors of production to produce goods and services in order to earn a profit
importance of entrepreneurship	1. innovative and creative solutions 2. Increase foreign exchange earnings 3. Reduce unemployment levels 4. Reduce dependency on government
functions of an entrepreneur	1) Organizing - putting together the factors of production. 2) Risk bearing - assumes all risks of the business. 3) Innovation - new ideas or products to solve consumers needs or wants.
the main sectors in an economy (levels of production)	primary secondary tertiary
primary sector	Organisations involved in extraction of raw materials from the earth. e.g. Oil mining, agriculture
secondary sector	Organisations involved in transforming raw materials from primary sectors into goods. eg furniture manufacturing, food processing.
tertiary sector	Businesses involves providing services (there is no manufacturing involved) E.g. tourism, retail, transportation, legal services.

Siguiente

Section 2 - learning objectives 1-3

Descripción

Resumen del Recurso

Similar

	Creado por Nikolas Reece hace más de 6 años