1.2.14 The Factors of Production and Sectors of the Economy

• 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