Production
by Parth Patel
1. Economic Resources
2. Entrepreneurship
2.1. The imagination to see how any idea can work and the forsight to see the possibility of making a profit
3. Labour
3.1. Human Resources
4. Land
4.1. Natural Resources
4.2. Mainly anything extracted from the earth
5. Capital
5.1. A good produced in order to produce something efficiently
6. The Learning Curve
6.1. Is a Tool for measuring the effectiveness of experience on efficiency
7. Risk taking
8. Innovation
9. Invention
10. Creating a NEW Concept
10.1. The First Cellphone
11. Improving on or adapting on a pre-exising idea
11.1. The iPhone
12. Profit
13. Wages & Salaries
13.1. Depending on Where and What you do
14. Quantity
14.1. All the people avalible and able to work (LFpop)
14.1.1. these people are able and available to work
14.2. Anyone who isn't 15+ is not in the LFpop
14.2.1. but little billy here cannot
15. Quality
15.1. Education
15.2. Motivation
15.3. Health
15.4. etc.
16. Labor Force
16.1. Employed+Unemployed workers =
17. Employed: People who have a job or work
17.1. Thsi ear more jobs opened up
17.2. Part time jobs decreased and Full time increased
18. Unemployed: people who do not have a job however are searching for/want one
18.1. Grandpa Sam here wouldn't be unemployed as he retired and doesn't want a job no more
19. Unemployment rate
19.1. The number of people Unemployed/the labor force =
19.2. The unemployment rate in Canada = 6.8%
19.2.1. more jobs came this year but more people are unemployed
19.2.2. 1% of people found jobs but 0.2% didn't
20. 25%
21. Rent
22. Minerals
22.1. Precious Gems
22.2. Iron
22.3. steel
22.4. coal
22.5. zinc
22.6. etc.
23. Water
23.1. Lakes
23.2. Rivers
23.3. etc.
24. Animals
25. Forests
25.1. Wood
25.2. Fruit
25.3. etc,
26. Fixed
27. Scarcity
28. Advancements
29. Technological Breakthroughs
29.1. which is caused by the innovation and creation of new ideas which started to commence during the industrial revolution (in the 1800s)
30. Investments
30.1. But with each future investment in capital goods possible future consumption is increased
31. Consumer goods
32. Economic level/system
32.1. a subsistence level economy can spare very few resources for capital good production
32.1.1. THUS THE GAP BETWEEN POOR AND RICH WIDENS
33. Future Growth
33.1. however it requires a sacrifice of present consumption
34. Specialization
34.1. A new Way Of Doing Things
35. Increased Productivity
36. Trade
37. Surpuls
37.1. the amount by which the value of a country's exports exceeds the cost of its imports.
38. Deficit
38.1. the amount by which the cost of a country's imports exceeds the value of its exports
39. GDP
40. 2 Typles
41. Geographical Specialization
41.1. Varying land usage depending on topographical conditions
41.2. Canada is suited to grow specific items(wheat,woll,etc.)
42. Labor Specialization
42.1. Achieved when the production process is broken down into tiny tasks
42.2. E.g. Building a car
42.3. Referred to as the division of labour
43. Advantages Of Specialization
44. Time Efficiency
44.1. reduced time in training because the task has been simplified
44.2. only have to teach someone to screw in a part rather than teach the person how to make the whole car
45. Practice Makes Perfect
45.1. after screwing that part in over 100 times you should know more efficient/best ways of doing it
46. Disadvantages of Specialization
47. Higher Standard of Living
48. Loss In Quality
48.1. because of the creating habits motivation, quantity may fall while absenteeism rises
48.1.1. E.G. if you do a math question 100 times you will start to use shortcuts
49. Dependancy
49.1. Because all tasks make up the chain of production a break in the chain will cause problems all through the chain
49.1.1. if the person in front of you slows down then the whole line has to wait
50. Loss of Flexability
50.1. since their knowledge is limited their tasks cannot be changed easily
50.1.1. A physicist probably doesnt know much about economics
51. High Required Input
51.1. Initially more costly and needs a larger production runs to be profitable
51.1.1. E,G. you need to hire 5 people instead of 1
52. For Specialization to be profitable ...
53. Enough Demand to Accomodate the supply
54. A Standardized Product
54.1. I.E. A single Modle Of a Car as opposed to a custom version
55. Production Process
55.1. The Complete Process of making goods and services avalible to a consumer
55.2. Usually all productive activity can be divided into 3 catagories of industries
55.3. Any Activity Which Serves To Satisfy human wants
56. Primary Industry
56.1. Work close to the land produce staple goods
56.2. Extraction
57. Oil
57.1. Oil Rigs are a great example due to the profit and resource gathering within it
57.2. However it is becoming rather expensive and inefficient
58. Seondary Indusrt
58.1. Manufacturing staple products into finished products
59. Factories and manufacturing plants
59.1. most producers have these as this is where the car is being made
60. Tertiary Industry
60.1. The link between the producer and the consumer (the service indusrty)
61. Vendors/Retailers
61.1. E.G Costco or Walmart who recieves the goods from the secondary/primary industries and sells them
62. Price
62.1. Producers attempt to innovate and invest so that they can maximize profit
63. Profit = Total Revenue - Total Costs
63.1. E.G. Assume i make widgets. Last year i made 200000 widgets and sold them for $3 each, a widget costs $1.5 to make
64. Total Revenue
64.1. TR= 3x200000 = 600,000
65. Total Costs
65.1. TC = 1.5 x 200000 = 300,00
65.2. When Calculating Cost you must consider both fixed and variable costs
66. Therefore Profit = $300,000
67. Fixed Costs: Costs that do not vary with output changes
67.1. I.E. Rent (even if kids don't show up you have to pay rent
68. Variable Costs: Costs that do vary with Output Changes
68.1. I.E Price Paid Per Person at the party
69. Efficiency
69.1. I want to increase my profit but still maintain the same outpu, to do this i must think of a way to increase productivity
70. Otut/Input = Productivity
71. Examine The Input Costs
71.1. Maybe One Specific Input Cost is tising too dat, so if we devise a way to combine my input factors differently so that the rising input would have less effect on my profit
71.2. I.E If rent is too high then find a new location
72. Invest In Research to develop a more efficient method
72.1. Basically creating better capital goods
73. Using Substitute Lower Costing Material
73.1. I.E Fibre Glass VS Steel
74. Capital
74.1. Capital and Labour intensive countries should depend on the country's resources and produce products whose requirements are consistant with the country's resources
74.2. E.G. Brazil is focused on capital , since that is relatively scrap in brazil
75. Mass Producton
76. Large Labor Force
77. Automation
77.1. Involvement Of Machinery and capital to more efficiently produce without the the need of humans
78. .
79. Technological BreakThroughs
79.1. I.E The Discovery Of the Silicone Chip
79.2. Started During the Industrial Revolution (in 1980 factories only had 4 robots and in 1981 hey now had 34 robots)
80. Increasing Cost Of Labor Relative To capital
80.1. now with standards of labor(or any kind) rising) capital investments are seeming to look more profitable rather than an oppurtunity cost
80.2. Thus more companies go multinational and go to out sourcing to third world countries(but that may get pricy too)
81. .
81.1. Large Scale Automated systems require humans to centralize control and for maintanence
82. Benefits
83. Increased Standard Of Living
83.1. This Increade in productivity leads to an increase in the standard of living
83.2. I.E Higher Employement
84. Safety
84.1. Dangerous and boring jobs are being eliminated
84.2. I.E BOMB DISPOSAL
84.3. The Learning Curve
85. Costs
86. Unemployement
86.1. The trend to automate is increasing due to the technology improving and expanding
86.2. also an increasing cost of labour as a percentage of total production costs
86.3. macines are more efficient (i.e. they wont go on strikes, absence, sick or have a bad day)
87. Oconcept: behind the learning curve practice increases efficiency"practice makes Perfect"
88. Example
88.1. an 80% learning Curve
88.2. As a Cumulative quantities of production doubles average time per unit may fall to only 80%of the previous time
89. As Production Quantities increase, average time per unit starts to decrease
