3.1.4.1 Production

• What is production in economics defined as?

  Creating goods and services
• Labor refers to the human effort and skills applied to production.


  True
• The ability to organize and manage factors of production is called enterprise
• Place the four main factors of production in order:

  1️⃣ Land

  2️⃣ Labor

  3️⃣ Capital

  4️⃣ Enterprise
• A production method that relies heavily on human labor is called labor-intensive
• Automation reduces the need for human labor in production.


  True
• A more skilled workforce can improve productivity.

  True
• What is the definition of productivity in economics?

  Output per unit of input
• What are the four key factors of production?

  Land, labor, capital, enterprise
• What is an example of capital as a factor of production?

  Machinery
• What is the output generated by combining factors of production?

  Goods and services
• Order the three main production methods from most labor-intensive to least labor-intensive.

  1️⃣ Labor-intensive

  2️⃣ Capital-intensive

  3️⃣ Automation
• Automation reduces the need for human labor in production.


  True
• Productivity is measured as the output produced per unit of input
• How can land be improved to increase production?

  Better farming techniques
• Order the steps a manufacturing firm could take to increase production.

  1️⃣ Invest in new machinery

  2️⃣ Hire and train skilled workers

  3️⃣ Expand factory floor space

  4️⃣ Implement lean manufacturing techniques
• Natural resources used in production are referred to as land
• What is capital in economics used for?

  Producing other goods
• Match the factor of production with its description:

  Land ↔️ Natural resources

  Labor ↔️ Human effort and skills

  Capital ↔️ Man-made goods

  Enterprise ↔️ Organization and management
• Goods and services are the output of combining factors of production.


  True
• Which production method uses machinery and equipment as its primary factor?

  Capital-intensive
• What does productivity measure in economics?

  Output per unit of input
• Improvements in technology can increase productivity
• Why is improving productivity crucial for firms?

  Lower costs and higher profits
• Technology is a key factor that affects productivity.


  True
• Improving productivity is crucial for economic growth and competitiveness
• Land refers to natural resources used in production
• Enterprise involves the organization and management of other factors of production.


  True
• Production is the process of creating goods and services by combining factors of production
• What type of production method relies heavily on human labor?

  Labor-intensive
• What factors influence the choice of a production method?

  Nature of product, cost of inputs, business strategy
• Technology improvements can increase productivity.


  True
• Providing more training to workers can improve their skills and productivity
• What is the ultimate goal of enhancing factors of production?

  Increase quantity and quality of goods