11463866
Description
| Question | Answer |
| 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. |
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