Unit 1: Real world

• What are the factors of production?

  Land, labor, capital, and entrepreneurship
• Why are the factors of production important?

  They are used to produce goods and services
• How can you remember the factors of production?

  • Think "SELL"
  • S: Sell
  • E: Enterprise
  • L: Land
  • L: Labor
• What does land represent in the factors of production?

  Natural resources and physical space for production
• What does labor represent in the factors of production?

  Human effort and skill applied to production
• What does capital refer to in the factors of production?

  Tools, machinery, and financial resources for production
• What does entrepreneurship encompass in the factors of production?

  Innovation, organization, and risk-taking
• How does entrepreneurship drive the production process?

  By driving innovation and taking risks
• What are the inputs and outputs in the production process?

  • Inputs: Factors of production
  • Land
  • Labor
  • Capital
  • Entrepreneurship
  • Outputs: Goods and services
• What is the role of a business in the production process?

  To transform inputs into outputs
• What are the outputs of the production process?

  Goods and services
• What are the three main business sectors?

  Primary, secondary, and tertiary sectors
• What does the primary sector focus on?

  Extracting raw materials from the earth
• What percentage of the UK economy does the primary sector account for?

  1%
• What does the secondary sector focus on?

  Converting raw materials into goods
• What are the biggest parts of the secondary sector?

  Manufacturing and construction industries
• What percentage of the UK economy does the secondary sector account for?

  19%
• What does the tertiary sector focus on?

  Providing services
• What percentage of the UK economy does the tertiary sector account for?

  80%
• What is the biggest service in the tertiary sector?

  Financial services
• What are the characteristics of the primary, secondary, and tertiary sectors?

  • Primary Sector: Extracts raw materials (1% of UK economy)
  • Secondary Sector: Converts raw materials into goods (19% of UK economy)
  • Tertiary Sector: Provides services (80% of UK economy)
• What is a business?

  A business produces outputs from inputs
• What are the inputs in a chocolate company?

  Farm, labor, robots, factory, entrepreneur
• What are the four factors of production?

  Land, labor, capital, enterprise
• What are the four sections a business is divided into as it grows?

  Operations, HR, marketing, finance
• What are the internal factors of a business?

  • Operations
  • Human Resources (HR)
  • Marketing
  • Finance
• How do external factors affect a business?

  They come from outside and influence operations
• What external pressures can affect a business?

  Economy, laws, consumer protection, ethics
• How does the economy impact businesses?

  A poor economy usually negatively affects them
• What is consumer protection?

  Regulations ensuring quality of goods and services
• Why is ethical consideration important for businesses?

  It ensures morally correct practices are followed
• What are outputs produced by a business?

  Goods and services
• What is the difference between goods and services?

  Goods are tangible; services are intangible
• What is a good?

  A tangible product that satisfies needs
• What is a service?

  An intangible process that satisfies needs
• What is the definition of a consumer?

  Someone who buys a good or service
• What are needs and wants?

  Needs are essentials; wants are non-essentials
• What is the significance of carbon footprint for businesses?

  It impacts environmental considerations and marketing
• What is a tangible product?

  A physical item you can hold
• What is an intangible process?

  A service that cannot be physically held