Production

• What are the four factors of production?

  Land, labor, capital, and enterprise
• What is the reward for land as a factor of production?

  Rent
• What does land as a factor of production include?

  All natural resources used in production
• What is labor as a factor of production?

  Human effort used in production
• How can labor be categorized?

  Physical or mental effort
• What is the reward for labor?

  Wages or salaries
• What does capital as a factor of production encompass?

  Resources used to produce goods or services
• What are the two types of capital mentioned?

  Fixed capital and working capital
• What is fixed capital?

  Permanent assets not used up in production
• What is working capital?

  Capital used up during the production process
• What is the reward for capital?

  Interest
• What is the role of enterprise in production?

  Brings together other factors to form a unit
• What is the reward for entrepreneurship?

  Profit
• How does the Caribbean utilize its natural resources?

  For mining, farming, fishing, and tourism
• What is the definition of production?

  Use of resources to make goods or services
• What is productivity?

  Measures the rate of production
• How is productivity measured?

  Output per unit of input
• How does production differ from productivity?

  Production is inputs turned into outputs
• What is an example of productivity in a bakery?

  One baker produces 10 loaves per hour
• Why is productivity important for businesses?

  It saves money and maximizes workforce output
• What factors can lead to high productivity?

  Good natural resources and advanced technology
• How does technology improve productivity?

  Allows higher output with the same input
• What is the impact of high-quality physical capital on productivity?

  Improves the quality of output produced
• What is one key factor that can improve efficiency in production?

  Technology
• How does advanced technology affect productivity?

  It enhances productivity and efficiency
• What happens to productivity when high-quality raw materials are used?

  Output quality and productivity increase
• How is productivity of land calculated?

  Value of crops divided by land area
• What does productivity of capital include?

  Revenue divided by total value of capital
• What are the effects of increased productivity on a business?

  Higher profits and increased production
• How does increased productivity affect GDP on a macro level?

  GDP increases as output rises
• What is the relationship between productivity and consumer prices?

  Higher productivity can reduce consumer prices
• What is venture capital used for?

  Starting a new business
• What are the three types of production?

  • Primary production (extractive)
  • Secondary production (manufacturing)
  • Tertiary production (services)
• What is primary production also known as?

  Extractive industry
• What does secondary production involve?

  Making something from raw materials
• What is an example of tertiary production?

  Financial services
• What are the levels of production?

  • Subsistence production
  • Domestic production
  • Export production
• What is subsistence production?

  Producing enough for family and local market
• What does domestic production supply?

  National market needs
• What is export production?

  Producing for international markets