![]() ![]() The chain of production is the processes undergone in the production of a product (usually passes from the primary sector through the secondary sector and finally to the tertiary sector where it is distributed to consumers, although the tertiary sector is also seen to provide the primary sector in many cases with services such as banking and insurance.).Tertiary (provides services such as leisure or retailing.).Secondary (manufacturing of products, the processing of resources to make intermediate goods and capital goods that are employed in the manufacture of proper products.).Primary (agriculture, mining, logging.).Enterprise is the FoP which organizes other FoPs and which takes risk.Use R&D to develop machinery and improve upon them.How to increase the productivity of capital: This also provides a source of peer pressure because if profit sharing is employed all the workers must work hard meaning that those who do not will be placed under pressure by their fellow workers to work harder. Provision of financial incentives (profit sharing: a percentage of the annual profit is given to each worker as an addition upon what they would normally earn, calculate salaries directly from the units of output produced by each worker.) These give workers reason to work harder as the harder they work the more they will potentially earn.Improve the working conditions for workers to motivate them to work harder as this promotes the belief that the firm is concerned for the welfare of its workers and so the workers should be loyal to their firm and show their loyalty by working harder.How to increase the productivity of labor: Use of GM crops instead of normal crops (farmland).Improve drainage and irrigation (farmland).How to increase the productivity of land: ![]() Causes the Production Possibility Frontier to shift outwards because you now have the capacity to produce more.Since a firm with higher productivity will necessarily have more profit, both the local economy and the firm will become wealthier. Corporate taxes levied at the firm are based on net profit.Means greater wealth for the local economy and the owners of the firm in question.May mean lower average costs for the business and so potentially lower prices for the consumer.Using a lesser amount of FoP to produce the same amount of output as previously.Using the same amount of FoP to produce a greater amount of output than previously.(Calculated in a fashion very much alike to efficiency because productivity is basically the efficiency of production.) Productivity refers to the amount of output that can be produced from a given amount of Factors of Production (FoP).More education is generally available in these countries, so people have more opportunities to pursue jobs in the Tertiary Sector. The developed countries are now tending towards the Secondary and Tertiary Sectors. This is mainly because labor is often cheap in these countries, and the primary sector opens doors to more jobs and hence decreases unemployment
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