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Production by Mind Map: Production

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


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


84.3. 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