Production PDF

## Production **Second Quarter** The processes and methods used to transform tangible inputs (raw materials, semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services. Resources are used in this process to create an output that is suitable for...

## Production **Second Quarter** The processes and methods used to transform tangible inputs (raw materials, semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services. Resources are used in this process to create an output that is suitable for use or has exchange value. **Second Quarter** ### Diagram of production The diagram shows a simple model of production. - **Input:** Resources that go into the production process - **Production:** The process of transforming inputs into outputs - **Output:** The finished goods or services that are produced. ### Examples of production Here are some examples of production: | **Input** | **Output** | | :----------------------------------------- | :------------------------------------------------ | | 1. Wood, nails, screws, labor, tools | 1. A chair | | 2. Flour, sugar, eggs, milk, chocolate, labor | 2. A slice of chocolate cake | | 3. Chicken, vegetables, broth, spices, labor | 3. A bowl of chicken soup | | 4. Pasta, bacon, eggs, cheese, parmesan, labor | 4. A plate of pasta carbonara | ### Factors of Production The inputs needed for creating a good or service, which include land, labor, entrepreneurship, and capital. **['fak-tərs əv prə-'dək-shən]** ### Four Factors of Production In economics, the four factors of production (also called inputs of production) are the resources used to create goods and services (Samuelson & Nordhaus, 2009). | **Factor** | **Description** | | :------------------ | :-------------------------------------------------------------------------------------------------- | | **Land** | Land refers to all natural resources, such as minerals, forests, and water. | | **Labor** | Labor refers to the effort and skills of people who work to produce goods and services. | | **Capital** | Capital refers to the tools, machinery, and other physical assets used to produce goods and services. | | **Entrepreneurship** | Entrepreneurs combine the other factors of production, land, labor, and capital to make a profit. | **HELPFULPROFESSOR.COM** ### Breakdown of **Factors of Production** **Factors of Production** - Land (physical and mental workforce) - Capital (Fixed and working to purchase capital goods) - Labor (Renewable and non-renewable resources) - Entrepreneurship/Enterprise (Combination of factors) **Income** - Rent - Interest - Wages - Profit **WallStreet**