Producers, Resources and Production
Need
Something essential for survival eg. food,clothing,shelter
Want
Something desired but not essential for survival eg. ipad
Goods
Tangible Items eg.shoes
Service
A job done for you eg. haircut,massage
Consumers
People who buy/use goods and services
Producers
Anyone involved in making goods and services eg. accountant
Inputs
Resources used in the production process (natural,capital or human)
Outputs
The goods and services created by the production process eg. factory,machines
Natural Resources
Resources provided by nature eg. mineral deposits,fish,sunlight,water
Renewable Resources
Natural resources that can regenerate/regrow in a resonable time frame
Non-Renewable Resources
Natural resources that cannot regenerate/regrow in a reasonable time frame
Capital Resources
Man-made resources used in the production process eg. factory,machines
Capital-Intensive Production
Where the production process uses more machines than workers
Consumer Goods
Goods and servies bought by householders to satisfy their needs and wants
Labour Resources
Workers used in the production process
Enterprise
Entreprenuers are people who take risks by bringing together resources to set up a new business
Labour-Intensive Production
Where the production process uses more workers than machines
Primary Sector
Firms that extract natural resources eg. farming,mining,fishing
Secondary Sector
Firms that process resources into finished or semi-finished goods eg. manufacturing
Teritory Sector
Firms that provide a back-up service eg. retailing,banking,transporting
Interdependence
Where 2 groups rely on each other (eg. firms depend on households to buy their products while households depend on firms for jobs and to provide goods and services)
Production
Creating goods or services. It involves inputs (resources) being processed into outputs.
Productivity
Measures the rate of output to show efficiency of the production process. (Labour productivity = output per worker per hour.)
Specialisation
Where a worker or machine produces just one part or one type of output.
Division Of Labour
Where the production process is divided into distinct tasks so that each worker specialises in just one part of it.
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