BUSINESS ECONOMICS 5.0 / 5 based on 2 ratings ? EconomicsDEFINITIONSIGCSEEdexcel Created by: alena910Created on: 29-04-19 17:30 factors of production resources used to produce goods and services, which include land, labor, capital and enterprise 1 of 32 production process that involves converting resources into goods or services 2 of 32 working capital or circulating capital resources used up in production such as raw materials and components 3 of 32 capital intensive production that relies more heavily on machinery relative to labour 4 of 32 labour intensive production that relies more heavily on labour relative to machinery 5 of 32 primary sector production involving the extraction of raw materials from earth 6 of 32 secondary sector production involving the processing of raw materials into finished and semi finished goods 7 of 32 tertiary sector production of services in the economy 8 of 32 de industrialisation decline in manufacturing 9 of 32 piece rate amount of money that is paid for each item a worker produces, rather than for time taken to make it 10 of 32 division of labour breaking down of the production process into small parts with each worker allocated to a specific task 11 of 32 specialisation production of a limited range of goods by individuals, firms, regions or countries 12 of 32 fixed costs costs that do not vary with the level of output 13 of 32 variable costs costs that change when output levels change 14 of 32 diseconomies of scale rising average costs when a firm becomes too big 15 of 32 economies of scale falling average costs due to expansion 16 of 32 internal economies of scale cost benefits that an individual firm can enjoy when it expands 17 of 32 bulk buying buying goods in large quantities, which is usually cheaper than buying in small quantities 18 of 32 purchasing economies large firms that buy lots of resources get cheaper rates because suppliers offer discounts to firms that buy raw materials and components in bulk 19 of 32 marketing economies A large firm can spread its advertising and marketing budget over a large output. 20 of 32 technical economies larger firms are more efficient than smaller ones because there is often more specialisation and investment in machinery 21 of 32 financial economies large firms can get access to money more cheaply as they have a wider variety to choose from 22 of 32 managerial economies as firms expand they are more capable of affording specialist managers 23 of 32 risk bearing economies larger firms are more likely to have wider product ranges and sell into a wider variety of markets, this reduces the risk in businesses 24 of 32 external economies of scale cost benefits that all firms in an industry can enjoy when the industry expands 25 of 32 market niche smaller market, usually within a large market or industry 26 of 32 patent license that grants permission to operate as a sole producer of a newly designed product 27 of 32 oligopoly market dominated by a few large firms 28 of 32 interdependance when the actions of one country or large firm will have a direct effect on others 29 of 32 wage rate the amount of money paid to workers for their services over a period of time 30 of 32 derived demand demand that arises because there is demand for another good 31 of 32 labour mobility ease with which workers can move geographically and occupationally between different jobs 32 of 32
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