Factors of Production – definition and explanation

factors-of-production

Factors of production refer to the different elements that are used in producing goods and services. Factors of production are inputs into the productive process. The four main factors of production are: Land – this is raw materials available from mining, fishing, agriculture Capital – This is a manufactured item used to aid production, for …

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Capital Accumulation – definition

capital-accumulation

Definition of Capital accumulation This is the process of acquiring additional capital stock which is used in the productive process. Capital accumulation can involve Investment in physical fixed capital (e.g. factories, machines) Portfolio investment – purchase of bonds, shares and cryptocurrencies Investment in assets, such as housing. Measuring capital accumulation Capital accumulation can be calculated …

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Definition of comparative advantage

Comparative advantage occurs when one country can produce a good or service at a lower opportunity cost than another. This means a country can produce a good relatively cheaper than other countries The theory of comparative advantage states that if countries specialise in producing goods where they have a lower opportunity cost – then there …

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CIE A level economics revision guide

CIE-A-Level-Economics-Revision-Guide-2015-V1
  • Specific Cambridge International (CIE) A-level economics revision guide (units 1,2,3,4) – just £8.95
  • Updated for current CIE economics syllabus.
  • E-book (comes in pdf format shortly after purchase.)
  • Trademark simplicity and clarity of presentation.
  • Significantly expanded on previous version, with not just required knowledge, but also examples of evaluation for each topic.
  • For schools – See: Network License – A-level CIE Economics (£105.00) (allowing unlimited use)

Demand for labour

Demand for labour is a derived demand. This means it depends on demand for the product the worker is producing. If there is an increase in demand for visiting coffee shops, it will lead to an increase in demand for baristas (people who make coffee) The demand for labour will also depend on labour productivity, …

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WJEC A-level economics revision guide

WJEC-A-Level-Economics-Revision-Guide
  • Specific WJEC A-level economics revision guide (units 1,2,3,4) – just £8.95
  • Updated for the new WJEC economics syllabus. Last updated June 2022.
  • E-book (comes in pdf format shortly after purchase.)
  • Also suitable for Eduqas. Eduqas is part of WJEC and it is the same syllabus.
  • Trademark simplicity and clarity of presentation.
  • Significantly expanded on previous version, with not just required knowledge, but also examples of evaluation for each topic.
  • For schools – See: Network License – A-level WJEC Economics (£105.00) (allowing unlimited use)

Specialisation and division of labour

Specialisation occurs when workers are assigned specific tasks within a production process. Workers will require less training to be an efficient worker. Therefore this will lead to an increase in labour productivity and firms will be able to benefit from economies of scale (lower average costs with increased output) and increased efficiency. Examples of specialisation …

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Population density

victorian houses

Population density is the average number of people living per square mile/km. A high population density implies that the population is high relative to the size of the country. Countries, such as Belgium and the Netherlands have a high population density. Large countries, such as Australia and Canada have very low densities. Though this low …

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