1.2.14

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