4.03 Vocabulary & Summary of Notes

1. Production - The economic process or activity of producing goods and services. 2. Scarcity - A condition resulting from the gap between unlimited wants for goods and services and limited resources. 3. Factors of production - Productive resources; human and natural resources and capital goods 4. Natural resources - Any resource found in nature that is used to produce goods and services 5. Human (Labor) resources - People who work to produce goods and services. 6. Capital goods - Manufactured or constructed items (tools, buildings, equipment) that are used in the production of goods and services 7. Entrepreneurship – using/combine Factors of Production resources to create a new product or services 8. Tangible goods- Goods that can be held or touched (Example: Book, furniture, cheeseburger) 9. Intangible goods- Goods that have value but no physical presence (Example: mobile apps, downloadable music)

10. Natural resources: materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain. 11. Form utility - Usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer. 12. Planning- determining how products will be produced and how much of the product to produce. 13. Purchasing- buying the resources needed 14. Production process- the way in which production will be carried out. 15. Scheduling- determining the time table to follow in production 16. Dispatching- issuing orders for production to begin 17. Follow-up- make sure products meet standard and are completed according to plan

Describe the importance of production to an organization The process of transforming the natural resources of the land into consumer satisfying consumption goods or productive capital goods. This transformation process involves the four scarce resources or factors of production: 1. Labor 2. Capital 3. Land 4. Entrepreneurship Although production is generally the physical transformation of materials, it often involves the spatial relocation, or transportation, of commodities, as well. Provides form utility (definition provided with terms) Enables companies to stay in business Allows businesses to turn out the maximum number of products at the lowest cost

Production Activities Planning Purchasing Production process Scheduling Dispatching Follow-up (All definitions provided with vocabulary)

4.03 Activity Go to: www.science.discovery.com/videos Click the search tool in the top right corner, type in “How its made” Choose 3 videos of interest to watch and complete the chart on your handout.