Production

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. Increased Productivity

35. Trade

36. Surpuls

36.1. the amount by which the value of a country's exports exceeds the cost of its imports.

37. Deficit

37.1. the amount by which the cost of a country's imports exceeds the value of its exports

38. GDP

39. Safety

39.1. Dangerous and boring jobs are being eliminated

39.2. I.E BOMB DISPOSAL

39.3. The Learning Curve

40. Oconcept: behind the learning curve practice increases efficiency"practice makes Perfect"

41. Example

41.1. an 80% learning Curve

41.2. As a Cumulative quantities of production doubles average time per unit may fall to only 80%of the previous time

42. As Production Quantities increase, average time per unit starts to decrease

43. Specialization

43.1. A new Way Of Doing Things

44. 2 Typles

45. Geographical Specialization

45.1. Varying land usage depending on topographical conditions

45.2. Canada is suited to grow specific items(wheat,woll,etc.)

46. Labor Specialization

46.1. Achieved when the production process is broken down into tiny tasks

46.2. E.g. Building a car

46.3. Referred to as the division of labour

47. Advantages Of Specialization

48. Time Efficiency

48.1. reduced time in training because the task has been simplified

48.2. only have to teach someone to screw in a part rather than teach the person how to make the whole car

49. Practice Makes Perfect

49.1. after screwing that part in over 100 times you should know more efficient/best ways of doing it

50. Disadvantages of Specialization

51. Higher Standard of Living

52. Loss In Quality

52.1. because of the creating habits motivation, quantity may fall while absenteeism rises

52.1.1. E.G. if you do a math question 100 times you will start to use shortcuts

53. Dependancy

53.1. Because all tasks make up the chain of production a break in the chain will cause problems all through the chain

53.1.1. if the person in front of you slows down then the whole line has to wait

54. Loss of Flexability

54.1. since their knowledge is limited their tasks cannot be changed easily

54.1.1. A physicist probably doesnt know much about economics

55. High Required Input

55.1. Initially more costly and needs a larger production runs to be profitable

55.1.1. E,G. you need to hire 5 people instead of 1

56. For Specialization to be profitable ...

57. Enough Demand to Accomodate the supply

58. A Standardized Product

58.1. I.E. A single Modle Of a Car as opposed to a custom version

59. Production Process

59.1. The Complete Process of making goods and services avalible to a consumer

59.2. Usually all productive activity can be divided into 3 catagories of industries

59.3. Any Activity Which Serves To Satisfy human wants

60. Primary Industry

60.1. Work close to the land produce staple goods

60.2. Extraction

61. Oil

61.1. Oil Rigs are a great example due to the profit and resource gathering within it

61.2. However it is becoming rather expensive and inefficient

62. Seondary Indusrt

62.1. Manufacturing staple products into finished products

63. Factories and manufacturing plants

63.1. most producers have these as this is where the car is being made

64. Tertiary Industry

64.1. The link between the producer and the consumer (the service indusrty)

65. Vendors/Retailers

65.1. E.G Costco or Walmart who recieves the goods from the secondary/primary industries and sells them

66. Price

66.1. Producers attempt to innovate and invest so that they can maximize profit

67. Profit = Total Revenue - Total Costs

67.1. 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

68. Total Revenue

68.1. TR= 3x200000 = 600,000

69. Total Costs

69.1. TC = 1.5 x 200000 = 300,00

69.2. When Calculating Cost you must consider both fixed and variable costs

70. Therefore Profit = $300,000

71. Fixed Costs: Costs that do not vary with output changes

71.1. I.E. Rent (even if kids don't show up you have to pay rent

72. Variable Costs: Costs that do vary with Output Changes

72.1. I.E Price Paid Per Person at the party

73. Efficiency

73.1. I want to increase my profit but still maintain the same outpu, to do this i must think of a way to increase productivity

74. Otut/Input = Productivity

75. Examine The Input Costs

75.1. 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

75.2. I.E If rent is too high then find a new location

76. Invest In Research to develop a more efficient method

76.1. Basically creating better capital goods

77. Using Substitute Lower Costing Material

77.1. I.E Fibre Glass VS Steel

78. Capital

78.1. Capital and Labour intensive countries should depend on the country's resources and produce products whose requirements are consistant with the country's resources

78.2. E.G. Brazil is focused on capital , since that is relatively scrap in brazil

79. Mass Producton

80. Large Labor Force

81. Automation

81.1. Involvement Of Machinery and capital to more efficiently produce without the the need of humans

82. .

83. Technological BreakThroughs

83.1. I.E The Discovery Of the Silicone Chip

83.2. Started During the Industrial Revolution (in 1980 factories only had 4 robots and in 1981 hey now had 34 robots)

84. Increasing Cost Of Labor Relative To capital

84.1. now with standards of labor(or any kind) rising) capital investments are seeming to look more profitable rather than an oppurtunity cost

84.2. Thus more companies go multinational and go to out sourcing to third world countries(but that may get pricy too)

85. .

85.1. Large Scale Automated systems require humans to centralize control and for maintanence

86. Benefits

87. Increased Standard Of Living

87.1. This Increade in productivity leads to an increase in the standard of living

87.2. I.E Higher Employement

88. Costs

89. Unemployement

89.1. The trend to automate is increasing due to the technology improving and expanding

89.2. also an increasing cost of labour as a percentage of total production costs

89.3. macines are more efficient (i.e. they wont go on strikes, absence, sick or have a bad day)