PRODUCTION

PRODUCTION

What is production?

Production is the process of converting raw materials or semi-finished products into finished products or services, used to satisfy wants and needs of consumers.

Types of production

The production of goods and services goes through three stages.

•Primary production / extraction

•Secondary production/ manufacturing

•Tertiary production / services

Multiple Choice

How many types of production there is?

• 4

• 5

• 2

• 3

What is primary production?

Primary production involves the extraction of raw materials from natural resources. It is the first stage of production. 

Multiple Choice

Primary production is the __________ stage of the production process

• second

• last

• third

• first

What is secondary production?

Secondary production involves converting raw materials into finished goods. Secondary production is the second stage of production. 

Multiple Choice

Secondary production has to do with converting __________________________ into finished goods

• raw materials

• products

• services

• primary

What is tertiary production?

Tertiary production involves services that facilitate the buying and selling of goods. a career in tertiary production includes nurse, teacher, doctor etc.

Multiple Choice

One career in tertiary production is

• farmer

• nurse

• shoemaker

• engineer

There are four factors of production

•Factors of production are the resources used to produce goods and services.

• The four factors of production are:

•Land

•Labour

•Capital

•Entrepreneur/Entrepreneurship

Multiple Choice

What are the four factors of production?

• land, labour, capital, entrepreneur

• primary, secondary, tertiary, labour

• service, product, primary, capital

• land, labour capital, product

What is land as a factor of production?

In its simplest form, land is the physical place where economic activity takes place.

In a lemonade stand example, it could be the patch of lawn in front of your house. 

Multiple Choice

Land is the physical place where production takes place

• True

• False

What is labour as a factor of production?

Labour refers to all the people taking part in the production process.  There are three types of labour, unskilled labour, semi-skilled labour and skilled labour

Multiple Choice

How many types of labour are they?

• 4

• 5

• 3

• 2

What is capital as a factor or production?

This refers to all man-made resources that are used to make good and services such as factories and machinery.  Some examples of capital include buildings, machinery, raw materials, tools and vehicles.

Multiple Choice

Which is not an example,of capital?

• vehicle

• machines

• building

• workers

What is an entrepreneur as a factor of production?

An entrepreneur is a person who combines the other factors of production – land, labour and capital – to earn a profit.

Multiple Choice

Who is an entrepreneur?

• The boss who runs the business

• The employees

• The truck driver

• The customers