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Production
Process that involves converting resources into goods and services
Working Captial
Stocks of raw materials and components used in production.
Fixed capital
Elements of production that will not be converted into a final product E.g machinery
Land
Natural resources of the planet. Ex: seas, forests, deserts, minerals
In land, Air is free, the rest is _________
scarce
Labour
The workforce of the economy
Name four things that entrepreneurs do
Come up with a business idea
Business owners
Risk takers
Organising factors of production
How can business owners affect the production of a firm
They provide the money; they're the bosses
Primary sector
when a firm extracts raw materials from the Earth
The secondary sector
Processing raw materials into semi finished goods
The tertiary sector
Production of services into the economy
T or F: As countries develop, the primary sector grow
F
What do humans get replaced by in the primary sector?
Machinery
Name two changes of production in developed countries?
Changes in the importance of the different sectors
Manufactories have declined in developing countries
What are the changes in sectors when countries develop?
As countries develop, the tertiary sector grow while the primary sector get replaced by machinery
Name four reasons why manufactories have declined in developed country
People spend more time on services and the demand for manufactured goods has declined
There is competition between the manufactured goods in specific countries
As countries develop, the public sector grows
New tech gets replaced by humans
Note 
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