What are we going to learn?

Definition of production.

Inputs and outputs.

Production process

Questions?

What is the difference between trading business and manufacturing business?

A: Trading business buys and sells finished products and a manufacturing business produce/ make goods.

What is the difference between consumers and producers?

Producers are businesses that produce goods and services and consumers are people who buy and use goods and services

Production process

• Production is when inputs (raw materials) are transformed into outputs (finished goods or services).

• Production is the process where raw materials are converted into goods, for example, cotton into cloth and clothes, or where ideas and information are converted into goods and services.

Inputs

• Inputs is an economic term covering all the materials, time, money, energy and ideas that go into making a good or offering a service.

• These inputs are called factors of production.

• Four factors of production are needed: entrepreneurship, capital, labour and natural resources

1. Entrepreneurs

Capital

• Money or machines that is used to or run start a business

Land / natural resources

Inputs include a variety of different raw materials which all come from land.

• Raw materials are wheat or semi-produced materials like flour,

Labour

• Labour is all human effort, mental or physical, for reward.

Outputs

• are created as a result of the production process

Production process

VIDEO

What is the video about ?

What are the inputs in the video?

What is the process ? What is the output

Group work

• Used the given picture

• Look at you picture, think of what you produce

CLASS ACTIVITY